Tiffany 2015 Overall Profit Is Below Forecast.

Tiffany & Co., an American jewelry brand, said recently that during the holiday period, the consumption of tourism decreased by consumers. As the group's most important market, US regional performance was sluggish and its turnover declined.

Tiffany & Co. group CEO Frederic Cumenal said that due to the slowdown in consumer spending, the uncertainty of the global economic situation and the challenge of the jewellery market, it will have a negative impact on the overall turnover of the group. It is estimated that the overall profit in 2015 will be lower than that set by the group.

As the overall turnover fell, as of January 31st, the group said that the net profit for the latest fiscal year is expected to fall by about 10%, after a forecast of a decrease of 5% to 10%.

The group also said: "the forecast does not include the diluted earnings per share due to layoffs in the fourth quarter."

However, the jewelry retailer did not disclose how many employees were affected by layoffs.

As of the announcement date, the number of group stores was 307, a decrease of 11 to 296 compared with the same period last year.

125 of them are in the United States, 56 in Japan, 81 in the Asia Pacific region, and 39 in Europe. In addition, the company operates 5 stores in the United Arab Emirates, Arabia.

According to data released by the group, 8 shops were closed in the Asia Pacific region last year.

Tiffany & Co. did not sell well during the peak season.

In the two months ending December 31, 2015, the group's global net sales fell by 3% at a constant exchange rate.

Sales in the same store fell 5%.

Among them, jewelry category is not significant.

Growth.

In dollar terms, the group's global net sales amounted to $961 million, down 6% from the same period last year.

By region, under a constant currency exchange rate, US comparable store sales fell by 8% and total turnover fell by 5%.

The company pointed out: "most of the US's business turnover has been reduced, mainly due to the decrease in consumption of foreign tourists in parts of New York and the United States, and management has attributed this to the rise in the US dollar exchange rate."

During the holidays, the company CEO Frederic Cumenal stressed: "Tiffany & Co. continue to feel the pressure of the strong US dollar, because for the non dollar zone foreign tourists, the price difference will affect their consumption intensity. The Group expects this phenomenon to last until 2016."

Regional instability, global unstable economy and bad market environment have been affected.

For the short term prospects, Tiffany & Co.'s main rival in the Asia Pacific region is Zhou Dafu.

Zhou Dafu group's first half financial report showed net profit plunged 42.2% to HK $1 billion 560 million compared with last year. In the first quarter, the situation for the local jewellery brand Zhou Dafu is still not optimistic. Group sales decreased by 11% in the third quarter ended December 31st, of which mainland China's business volume fell 6%, while the turnover in Hongkong and Macao fell 20%.

Industry analysts said that the strong US dollar led to a continuous rise in prices of Tiffany & Co. products.

Whether it is high priced products of Tiffany & Co. or low profit products, the retail and wholesale markets of the group will change.

stay

On the basis of constant exchange rate, the same store sales declined by 9%, and the total turnover fell by 6%.

In the report, the group pointed out: "the strong growth of China's regional turnover is offset by the declining trend of Hongkong and Singapore, and the performance of different regional markets is different."

In Japan, due to the promotion of local customers and foreign tourists, the same store turnover increased by 10%, and the total turnover increased by 12%.

In Europe, same store turnover fell 2%, and total turnover increased by 4%.

Tiffany & amp; Co. said that the performance of the French region declined significantly, reflecting the consumption demand of local customers and foreign customers at different levels.