Tiffany & Co’s quarterly sales fell for the first time in five years and are expected to decline further as a strong dollar not only keeps tourists away from its flagship New York jewellery store but also reduces the value of sales overseas.
Sales outside the United States account for roughly half of Tiffany’s total revenue, while tourists have historically accounted for a quarter of U.S. sales. The company’s Fifth Avenue store counts on tourists for about 40 percent of sales.
Although Tiffany has been battling the effects of a strong dollar for months, the drop in fourth-quarter sales surprised analysts, most of whom were expecting an increase.
(Source: CNBC)