Tiffany's holiday sales fall, weak conditions remain

AP News
Posted: Jan 19, 2016 1:27 PM
Tiffany's holiday sales fall, weak conditions remain

NEW YORK (AP) — Tiffany reported a worldwide decline in jewelry sales during the holiday period as consumer spending remained tepid in an uncertain global economy.

The company reported a 9 percent drop in global same-store sales, or sales at stores open at least a year. Every region experienced a decline, except for Japan.

Its shares tumbled almost 6 percent in morning trading.

"We believe overall sales results were negatively affected by restrained consumer spending tied to challenging and uncertain global economic conditions," said CEO Frederic Cumenal, in a statement.

Same-store sales fell 10 percent in the company's America's region, mainly on lower tourist spending in New York and other markets. The Asia-Pacific region saw a 14 percent drop and Europe experienced a 10 percent drop.

Concern over global economic growth has been heightened as China's growth slows down. China's growth has been falling steadily, hitting a quarter-century low in 2015.

Looking ahead, Tiffany expects full-year profit for 2015 to decline by 10 percent, closer to its worst-case outlook for the year. It expects minimal growth in 2016.

Shares of Tiffany & Co. dropped $2.2.24, or 3.3 percent, to $65.41 in afternoon trading Tuesday. Its shares are down more than 26 percent over the past year.