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The
company also forecast a mid-single digit percentage fall in its
full-year profit. Tiffany had earlier said it expected earnings
to stay flat or fall by up to mid-single digit in percentage
terms.
Shares of the company, whose "Blue Book" collection was flaunted
by actress Cate Blanchett on the Oscar red carpet this year,
fell 4.5 percent to $61 in premarket trading on Wednesday.
Tiffany's reluctance to offer promotions has been turning away
thrifty shoppers, while a stronger dollar has made purchases
more expensive for tourists.
"We faced numerous challenges, including continued pressure from
foreign tourist spending in Europe, the U.S. and Asia,
particularly in Hong Kong," Chief Executive Frederic Cumenal
said.
Sales at the jeweler's stores open for more than a year fell 10
percent in the Americas region in the first quarter ended April
30. Analysts on average had expected a 9.1 percent decline,
according to research firm Consensus Metrix.
Tiffany's net income fell 16.6 percent to $87.5 million, or 69
cents per share.
Net sales dropped 7.4 percent to $891.3 million, missing the
average analyst estimate of $915.1 million, according to Thomson
Reuters I/B/E/S.
(Reporting by Subrat Patnaik in Bengaluru; Editing by Kirti
Pandey)
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