- 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, I think Tiffany's numbers were good in the sense that their earnings for the quarter beat expectations, and that was a positive. And they did it by very... you know... doing a great job controlling expenses. Now, some of the sales growth for the quarter was a little bit below expectations. But, you know, there's so much macro upheaval going on all over the world that, you know, it's sort of not really that surprising that the sales were a little bit light. But it's very important that they were still able to beat on the earnings."
- 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: LVA002AU4VZBH
- 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)
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