Revenues of the company Tiffany & Co. fell in the second quarter of the financial year against the backdrop of a difficult global market conditions that hit consumer spending in key markets for the company.
Comparable sales fell by 8% in the three months to July 31, was below analysts' expectations. In anticipation of the announcement of the results Deutsche Bank predicted seven percent decrease in bank noted that the results correspond to the consensus Bloomberg.
"The global environment continues to reflect a well-known issues, which we believe has had a profound impact on the costs of local customers, as well as foreign tourists, especially from China," - said General Director of Tiffany Frederick Kyumenal (Frederic Cumenal).
Group sales declined by 6% to $ 932 million, with the sharp decline recorded in the US, Asia-Pacific and Europe. Company executives noted a decrease in foreign tourist spending in all markets, and in particular, pointed to their decline in Hong Kong.
The company's net profit increased by 1% to $ 106 million as the company cut costs, including the costs of marketing, to compensate for the decline in sales. Tiffany has maintained its forecast, according to which the decline in revenue for the full 2016 fiscal year will be within 3-4%.
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