Sales missed the estimate
Tiffany (TIF) posted net sales of $1.0 billion, which fell marginally short of analysts’ estimate. The company’s net sales fell 2.9% on a YoY (year-over-year) basis. A decline in the comps due to lower tourist spending took a toll on Tiffany’s top line. Comparable sales fell 5% worldwide, which reflected lower tourist spending due to the stronger US dollar. Tiffany has missed analysts’ sales expectations in the past three quarters.
Sales by segments
Tiffany’s net sales in the Americas fell 4%, which reflected a 5% drop in comparable sales. The company’s management blamed lower spending by foreign tourists for the decline. The region’s sales are expected to be low in the second quarter.
In the Asia-Pacific region, net sales fell 1%, while comparable sales fell 5%. The improvement in China was more than offset by negative currency rates and lower sales in other markets.
In Japan, net sales fell 4% with a 4% drop in comparable sales. A decline in spending by foreign tourists took a toll on Japan’s net sales. In Europe, net sales fell 4%, while comparable sales fell 7%. The decline reflected a mixed performance across the regions and currency volatility.
Tiffany expects its net sales to increase by the low single-digits in fiscal 2019, which reflects an improvement in the second half of fiscal 2019. However, Tiffany’s second-quarter sales are expected to take a hit from lower tourist spending and the challenging operating environment.