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The
company also stuck to its full-year sales forecast, despite a
fall in tourist spending dragging on sales and the protests in
Hong Kong causing disruptions to its business in the city.
A protracted U.S-China trade war, stronger dollar and a stricter
U.S. visa approval process have all led to a near 3% fall in
Chinese citizens arriving in the United States this year,
pressuring American retailers that are increasingly reliant on
the high-spending tourists.
The United States could lose an estimated $3.8 billion in
visitor spending from China in 2019, according to research firm
Tourism Economics.
Last quarter Tiffany had suspended its digital marketing as it
revamped its websites. The company's expenses fell 5% in the
quarter, but said it expects to ramp up marketing spending in
the second half of the year.
Tiffany's net earnings fell to $136.3 million, or $1.12 per
share, in the second quarter ended July 31, from $144.7 million,
or $1.17 per share, a year earlier.
Analysts had expected earnings of $1.04 per share, according to
IBES data from Refinitiv.
Tiffany maintained its annual sales forecast of a
low-single-digit percentage rise.
The company's quarterly same-store sales, excluding the effects
of currency exchange rates, fell 3%. Analysts had expected a
1.3% decrease.
Net sales fell to $1.05 billion from $1.08 billion, missing Wall
Street estimates of $1.06 billion.
Tiffany's shares, which have fallen nearly 12% this month on
U.S. President Donald Trump's threats to ratchet up a trade war
with Beijing, rose to $85.05.
(Reporting by Uday Sampath in Bengaluru; Editing by Shounak
Dasgupta)
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