By Gayathree Ganesan
Tiffany & Co (TIF.N) (click here) reported lower-than-expected quarterly sales and a surprise drop in comparable sales, underscoring the upscale jeweler's struggles with a strong dollar that has crimped spending by tourists and weak demand at home.
The company's shares fell 5.6 percent to $87.95 before the bell on Wednesday.
The dollar has strengthened versus other currencies, so some of Tiffany's issues in the United States are more currency-related, Edward Jones analyst Brian Yarbrough told Reuters.
Comparable-store sales in the Americas, which account for nearly half of Tiffany's total revenue, fell 4 percent, while the company posted a 3 percent decline in the Asia-Pacific region in the first quarter.Analysts polled by Consensus Metrix expected a 0.5 percent drop in the Americas and a growth of 1.3 percent in the Asia-Pacific region in the first quarter ended April 30.
"Mainland China was very strong, but other parts of China were weaker and Macau and Hong Kong have been struggling now for a little while," Yarbrough added....
Wall Street expects a lot from the Trump White House. They expect to be soaring in heights in the markets. This fall in stock values at "Tiffany's" is a real disappointment. First Lady Melania Trump carried a Tiffany gift to Former First Lady Michelle Obama. The expectations that would send sales roaring is also reflected in the markets hubris during the first quarter of 2017.
The article mentions the value of the US Dollar as the reason why Tiffany's is struggling. I don't know what US Dollar the author is talking about; the lost value USA dollar or the one today. Today's purchases require many, many more dollars than in the past. So, if Tiffany wants more customers, it should demand a stronger dollar from the past so it doesn't take so many to purchase their products.
November 9, 2016
...The dollar's value (click here) has increased 25% since 2014. However, this hasn't offset its long-term decline....
