A drop in sales at Tiffany's flagship store hurt its holiday sales, and the upscale jeweler blamed its location next to Trump Tower. Fred Katayama reports.
Tiffany pointed its finger at President-elect Donald Trump's Trump Tower for part of its weak holiday sales results. Sales in November and December at its flagship store next to the Tower fell 14 percent, and that hurts because that store brings in just less than a tenth of its overall sales. That area has been affected by protests and heightened security since the election. Those who did visit its stores spent less. Net sales in the Americas fell 4 percent. But Tiffany has been suffering even before the election, as the stronger dollar crimped spending by tourists. The upscale jeweler doesn't see much sparkle ahead. It said it doesn't see economic conditions improving much this year. But Mizuho Securities USA analyst Betty Chen said Tiffany was "well positioned entering fiscal 2017 due to easy comparisons, store upgrades and product innovations ..." among other things. Tiffany shares falling roughly 1 percent, cutting into its nearly 5 percent gain so far this year.