Tiffany Sales Fall as Tourist Dip Worsens

RAPAPORT... Tiffany & Co.'s revenue and profit dropped in the first fiscalquarter amid a continued decrease in spending by foreign tourists and a strong US dollar, it said Tuesday.  Total revenue fell 3% to $1 billion in the three monthsending April 30, while comparable-store sales - at branches open for at least ayear - declined 5%. Profit slid 12% to $125.2 million. "Our first-quarter results reflect significant foreign-exchange headwinds and dramatically lower worldwide spending attributed to foreign tourists," said Tiffany CEO Alessandro Bogliolo. However, Tiffany noted an increase in purchasing by local customers during the period.  Thedevaluation of the Chinese yuan against the dollar amid a tariff dispute with the US has weighed on the jewelry retailer's results. The company earns moneyin foreign currency from its global stores, which it then converts into USdollars for reporting purposes. Revenue for the Americas slipped 4% to $406 million for theperiod. Tourist sales in the region fell about 25%, with spending by Chinese visitors declining by an even greater amount. The slowdown in that segment worsened compared with the second half of 2018, executives said on an investor call Tuesday. Sales in Asia Pacific inched down 1% to $324 million, as stronggrowth in mainland China was outweighed by mixed results in other markets in theregion. Proceeds in Japan fell 4% to $145 million, and those in Europe droppedby the same percentage to $102 million. Tiffany lowered its full-year profit forecast for fiscal2019, factoring in a potential 25% tariff on jewelry the company exports from the US to China. It now expects net earnings to increase by a low-to-mid-single-digitpercentage compared with the mid-single-digit percentage it previously predicted. The company maintained its outlook for sales growth in thelow-single-digit range for the year. Image: Tiffany's New York flagship store. (Tiffany & Co.)