Tiffany same-store sales fell 2 percent during the holiday shopping season as Chinese tourists bought less jewelry, the U.S. luxury jeweler said on Friday while tempering its outlook for annual earnings.
During the November-December period, Tiffany’s net sales also fell, about 1 percent to $1.04 billion, and Chief Executive Officer Alessandro Bogliolo blamed softening demand from local customers in Europe and the Americas regions.
“Overall holiday sales results came in short of our expectations,” Bogliolo said in a statement, adding that “external events, uncertainties and market volatilities” also hit sales.
Like many luxury goods companies, Tiffany relies on demand from China’s burgeoning middle class. Earlier this week, shares in European luxury firms fell after weak economic data from the Asian country.
On Thursday, Signet Jewelers Ltd also reported lower holiday period sales and slashed its full-year profit forecast.
Tiffany now expects full-year profit to be likely around the lower end of its previously announced range of between $4.65 and $4.80 per share.
Annual sales should rise 6 to 7 percent, the company said. It had earlier estimated growth in the high single percentage digits.
Shares of Tiffany’s fell 0.9 percent in early trade following the news.
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