Tiffany & Co reported a drop in first quarter earnings as a result of lower tourist spending in key retail markets, the US in particular.
Revenues declined by 3 percent to US$1 billion while profit reached US$125 million, down 12 percent from last year’s US$142 million.
Alessandro Bogliolo, CEO of Tiffany & Co, commented, “Our first quarter results reflect significant foreign exchange headwinds and dramatically lower worldwide spending attributed to foreign tourists.”
In the Americas, total net sales slid 4 percent to US$406 million. In Asia Pacific, net sales dropped 1 percent to US$324 million and comparable sales declined 5 percent due to the effect of foreign currency translation; on a constant-exchange-rate basis, total sales rose 3 percent and comparable sales were equal to the prior year. According to the company, these results reflected sustained growth in China and mixed results in other markets.
In Japan, total net sales were down 4 percent to US$145 million, again due to subdued tourist spending. Total net sales in Europe were 4 percent lower to US$102 million.
Tiffany opened two company-operated stores in the first quarter, closed two others and relocated two more. As of April 30, 2019, the company operated 321 stores (124 in the Americas, 89 in Asia Pacific, 56 in Japan, 47 in Europe and five in the UAE), versus 314 a year ago.
Sales results by jewellery category showed a 1 percent increase in Jewelry Collections while Engagement Jewelry and Designer Jewelry dropped 6 percent and 14 percent, respectively.