Tiffany & Co has decreased its profit forecast for the year as a result of low sales in Japan and over the holidays. The high-end jeweller is now expecting a profit of $4.15-$4.20 per year for the year ending January 31 in comparison to a prior forecast of $4.20-$4.30 per share.
Previously, Tiffany shares dropped by 14.4 per cent to $88.52, which is the company’s largest intra-day decline in almost 11 years.
Tiffany reports that during the holiday season, both overall and same-store sales in the Americas fell by 1 per cent in comparison to a 6 per cent increase last year.
Meanwhile in Japan, Tiffany sales have decreased for the past two quarters as result of the government’s move to raise consumption tax from 5 per cent to 8 per cent. CJ