(Bloomberg) -- Tiffany & Co., the luxury jewelry retailer, posted second-quarter sales that missed analysts’ estimates as global economic uncertainty weighed on demand.
Comparable-store sales fell 9 percent, excluding the effects of currency fluctuations, the New York-based company said in a statement Thursday. Analysts estimated a 7.1 percent drop, according to the average of estimates compiled by Consensus Metrix. Total revenue also trailed analysts’ projections.
Tiffany, which generates about half of its revenue overseas, joined consumer companies such as Estee Lauder Cos. in suffering from a global economic turbulence that has hampered high-end consumer spending. Terrorist attacks reduced tourism to Europe while stronger currencies deterred visits to the U.S. and Japan. Britain’s vote to leave the European Union also curbed sentiment among Tiffany’s affluent clientele.
“The global environment continues to reflect well known challenges that we believe have had broad effects on spending by local customers, as well as foreign tourists,” Chief Executive Officer Frederic Cumenal said in the statement.
Still, the company was able to control expenses, helping it post profit that topped estimates. Earnings were 84 cents a share for the period ended July 31. Analysts projected 71 cents, on average.
The shares fell 0.4 percent to $68.87 on Wednesday in New York, before the results were released. Tiffany has dropped 9.7 percent this year.
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