Tiffany & Co second quarter net earnings declined 16 percent from US$124 million to US$105 million year on year, and worldwide net sales were flat at US$991 million from the previous year’s US$993 million, according to the company’s press release.
Japan led the company’s regional sales growth with a 27-percent increase, followed by Europe with a 19-percent rise and Asia-Pacific at a nine-percent growth. A strong dollar has trimmed the value of Tiffany’s sales outside the United States and has kept foreign tourists from making purchases in its American stores. As a result, sales in America slipped two percent.
“We entered this year expecting translation and tourism-related pressures on sales and earnings from the exceptionally strong US dollar, as well as challenging economic conditions in certain markets. While the adverse effects from the strong dollar have been even more significant than initially expected, we met our overall expectations in the first half of the year,” said Frederic Cumenal, chief executive officer of Tiffany.
Tiffany now expects net earnings to fall between two percent and five percent for the full year with business regaining momentum in the fourth quarter.
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