Luxury jeweler Tiffany reports lower profit and cuts full-year forecast due to stronger dollar overseas and lower spending by US customers.
Shoppers saw a little less sparkle at Tiffany & Co. The luxury jeweler's profit slid 15% in the latest quarter, hurt by lower spending by tourists in the United States and a stronger dollar that reduced the value of overseas sales. The company reported a profit of nearly $105 million, or 81 cents a share, down from 96 cents, a year earlier. Tiffany also sharply cut its full year outlook saying it expects net earnings to fall 2-5 percent in the year ending January, compared with its earlier forecast of "minimal growth". Frederic Cumenal, CEO of Tiffany's, said "We entered this year expecting translation and tourism-related pressures on sales and earnings from the exceptionally strong U.S. dollar, as well as challenging economic conditions in certain markets. While the adverse effects from the strong dollar have been even more significant than initially expected, we met our overall expectations in the first half of the year." New York-based Tiffany, which gets about half of its sales from outside the US, has said currency fluctuations have reduced sales by 2-7 percent in the past three quarters. Tiffany shares, down about 21% this year, fell in early trading.