U.S. based luxury jeweler Tiffany & Co said profit would decline in for the full year and reported lower-than-expected sales for the second quarter as a strong dollar discouraged tourist spending in the United States and reduced the value of overseas sales.
“The adverse effects from the strong dollar have been even more significant than initially expected, Chief Executive Frederic Cumenal said in a statement.
Tiffany’s sales of which half come from outside the Americas, have been reduced by 2-7 percent in the past three quarters due to currency factors.
Tiffany’s total revenue fell 0.2 percent to $990.5 million in the quarter ended July 31, missing the average analyst estimate of $1 billion, according to Thomson Reuters. Excluding currency effects, revenue rose 7 percent.
Net income fell 15.4 percent to $104.9 million, or 81 cents per share. Excluding items, Tiffany earned 86 cents per share, while analysts had expected 91 cents. The company said it expects net earnings to decline 2 percent to 5 percent for the full year.