High-end jewelry store Tiffany & Co. has announced a drop in quarterly sales, missing forecasts and exhibiting a bigger fall in full-year profit. The drop in the company's sales is primarily attributed to the dollar, which has been gaining strength as of late, reports WGNO.
Tiffany CEO Frederic Culmenal states that the surge of the dollar has not only affected the company's local sales, it has also hurt the company's international profits as well.
"We believe that volatile, uncertain economic and market conditions in the U.S. and other regions are affecting consumer spending, causing us to maintain a cautious near-term outlook," he said.
Despite the weakening sales of the company, however, the shares of the company reversed and rose more than 4 percent on Tuesday. Sales in Japan also served as a silver lining in the company's otherwise dismal performance, with sales actually rising 17 percent to $133 million after falling for a year, according to Reuters.
The increase in Japan is attributed to a surge in the country's consumption tax.
Analysts, however, remain wary of Tiffany's future, as the holiday season usually signifies weak sales for the jewelry maker, mainly due to the company's tradition to shun promotions and discounts for customers who are shopping in the holidays.
The company has further announced that it is expecting its earnings to fall by 5 to 10 percent by the end of this year, as opposed to its previous forecast, when it predicted a 2 to 5 percent decline.
For more business news, click here.
