Tiffany&Co cuts jobs as sales drop
Tiffany & Co reported a sharp decline in holiday season sales and cut jobs as it struggles with weak spending by tourists in its showpiece stores in the United States.
The company’s traditional reluctance to offer promotions has been turning away thrifty customers and a stronger dollar has made purchases more expensive for tourists.
Tiffany’s shares were down 4 percent at $64.91 in heavy premarket trading on Tuesday. ”We believe overall sales results were negatively affected by restrained consumer spending tied to challenging and uncertain global economic conditions,” Chief Executive Frederic Cumenal said on Tuesday.
Tiffany reported a 6 percent drop in holiday season sales to $961 million. On a constant currency basis, sales fell 3 percent. The company said it now expects earnings to decline by 10 percent for the year ending Jan. 31 versus its previous forecast of a decline of 5-10 percent.
The forecast excludes a charge of about 4 cents per share in the fourth quarter for “staff and occupancy reductions,” the company said in a statement.
Tiffany, which is scheduled to report fourth-quarter results on March 18, did not give details on the size of the job cuts. The company has also been hit as jewelry loses its popularity as a holiday gifting item.