Categories Consumer, Retail, U.S. Markets News

Chinese tourist spending slump pulls down Tiffany holiday sales

US luxury jeweler Tiffany & Co (TIF) cut its yearly profit forecast on Jan. 18 on weaker holiday sales, after spending by Chinese tourists fell unexpectedly on a global level. Tiffany also saw lowering Europe demand.

During the last two months of 2018, worldwide same-store sales fell 2% while net sales slipped 1% — the estimation was that they would increase modestly.

Tiffany Chief Executive Alessandro Bogliolo in a statement said that lower spending by tourists, mostly Chinese, and uncertainties in Europe have adversely affected customer demand.

Alessandro Bogliolo’s statement read, “overall holiday sales results came in short of our expectations.”

In the first part of Friday, Tiffany stock slipped 1% on the news. Till Thursday close, the jeweler saw its stock fall 22% in the past twelve months.

Tiffany also refrained from raising its yearly profit targets in November, possibly due to the same slowdown in spending.

Tiffany is not the only one hit by this latest trend. Underwhelming holiday period results also affected Macy’s (M), Kohls (KSS) and other major US retailers.

On Thursday, another US jeweler Signet (SIG) posted sliding holiday period sales and cut its 2018 profit forecast. Its stock plummeted 20%.

REVISITING THE LAST QUARTER

Back in the last week of November 2018, Tiffany & Co posted a 4% rise in worldwide net sales of $1.01 billion, helped by a 2% improvement in comparable sales for the third quarter. However, the top line then narrowly missed market estimates.

Tiffany third quarter 2018 Earnings Infographic

Net earnings for the period fell 5% to $95 million or $0.77 per diluted share. In the Americas, total net sales inched 5% up to $442 million, while Asia-Pacific net sales rose 4% to $294 million.

At October 31, 2018, Tiffany operated 321 stores — 124 in the Americas, 89 in Asia-Pacific, 55 in Japan, 48 in Europe, and five in the UAE — vs. 315 stores a year ago.

 

Listen to publicly listed companies’ earnings conference calls along with the edited closed caption text

Most Popular

CCL Earnings: Carnival Corp. Q4 2024 revenue rises 10%

Carnival Corporation & plc. (NYSE: CCL) Friday reported strong revenue growth for the fourth quarter of 2024. The cruise line operator reported a profit for Q4, compared to a loss

Key metrics from Nike’s (NKE) Q2 2025 earnings results

NIKE, Inc. (NYSE: NKE) reported total revenues of $12.4 billion for the second quarter of 2025, down 8% on a reported basis and down 9% on a currency-neutral basis. Net

FDX Earnings: FedEx Q2 2025 adjusted profit increases; revenue dips

Cargo giant FedEx Corporation (NYSE: FDX), which completed an organizational restructuring recently, announced financial results for the second quarter of 2025. Second-quarter earnings, excluding one-off items, were $4.05 per share,

Add Comment
Loading...
Cancel
Viewing Highlight
Loading...
Highlight
Close
Top