Poor trading over Christmas period dulls Tiffany and Co’s outlook

Luxury US jeweller Tiffany and Co has become the latest retailer to suffer in a global downturn as it reported a decline in sales over the Christmas period.

Worldwide net sales declined one per cent to $1.04bn and like for like sales were down two per cent for the two months ending 31 December.

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Global sales in engagement and designer jewelry dropped three per cent and eight per cent respectively

In Europe, sales were down four per cent year on year, with “modest declines” in spending from both local customers and foreign tourists.

The company lowered its sales expectations for the year, from a high single digit percentage rise to an increase of between six and seven per cent.

Alessandro Bogliolo, Tiffany’s chief executive, said: “Overall holiday sales results came in short of our expectations which had called for modest year-over-year growth.

“We attribute the difference partly to lower sales to foreign (primarily Chinese) tourists globally, and to softening demand attributed to local customers in the Americas and Europe, which we believe may have been influenced more than expected by external events, uncertainties and market volatilities.”

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Tiffany’s shares declined 22 per cent last year amid challenging conditions for global retailers as it opened ten stores worldwide and closed four, bringing it to 321 global outlets.

The retailer is expected to release its fourth quarter results on 22 March.