Tiffany profit tops Street estimates, sales fall on tourist spending drop

Record ID: 1429050

  • Title: Tiffany profit tops Street estimates, sales fall on tourist spending drop
  • Date: 28th August 2019
  • Summary: NEW YORK, NEW YORK, UNITED STATES (AUGUST 28, 2019) (REUTERS) (SOUNDBITE) (English) UBS EXECUTIVE DIRECTOR, JAY SOLE, SAYING: "Well, for the stock, our rating is neutral, and, you know, a lot of what's going to move the stock is going to be based on what the macro environment does. You know, a lot of people are concerned about a recession. If that does happen, that probably is going to be, you know, a difficult thing for Tiffany to manage through, but it is 180-year-old brand. It's, you know, a very... globally known brand, in the great space, the luxury space. So, you know, Tiffany will be fine. But, I think, near term, that kind of macro environment would probably be, you know, a headwind for the stock price."
  • Embargoed: 11th September 2019 18:54
  • Keywords: Luxury jeweler Tiffany & Co quarterly earnings U.S-China trade war Hong Kong market high-spending tourists American retailers Chinese customers
  • Location: NEW YORK, NEW YORK, UNITED STATES
  • City: NEW YORK, NEW YORK, UNITED STATES
  • Country: USA
  • Topics: Company News Markets,Economic Events
  • Reuters ID: LVA006AU4VZBH
  • Aspect Ratio: 16:9
  • Story Text: Luxury jeweler Tiffany & Co on Wednesday (August 28) reported quarterly earnings that beat estimates on increased spending by local customers in mainland China and a cut-back on marketing costs, even as declines in tourist spending in the United States and political unrest in Hong Kong dragged on sales.
    The New York-based company also said it would stick to its full-year forecast of a low-single-digit percentage rise in sales.
    A protracted U.S.-China trade war, strong dollar and a stricter U.S. visa approval process have contributed to a near 3% drop in Chinese citizens arriving in the United States this year, pressuring American retailers that are reliant on the high-spending tourists.
    Tiffany's shares were up on the news.
    Chief Executive Alessandro Bogliolo told Reuters that while spending outside of China was down and currency headwinds and business disruptions in Hong Kong - Tiffany's fourth largest market - persisted, sales in mainland China were robust.
    (Production: Aleksandra Michalska)
  • Copyright Holder: REUTERS
  • Copyright Notice: (c) Copyright Thomson Reuters 2019. Open For Restrictions - http://about.reuters.com/fulllegal.asp
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