(Bloomberg) -- Tiffany & Co., the luxury jewelry retailer, posted first-quarter sales that trailed analysts’ estimates, hurt by weak demand from tourists.
Revenue in the quarter through April 30 fell 7.4 percent to $891.3 million, the New York-based company said Wednesday in a statement. Analysts had estimated $915 million, on average. Profit was 69 cents a share, or 64 cents, excluding a tax benefit. Analysts projected 68 cents.
Tiffany joins other retailers such as Ralph Lauren Corp. and Macy’s Inc. in suffering from a strengthening U.S. dollar that’s curtailing shopping from travelers. Foreign tourists account for more than 25 percent of Tiffany’s U.S. sales and 40 percent of revenue at its main store in New York’s Fifth Avenue, according to Oliver Chen, an analyst at Cowen & Co. The company is introducing more new items, including high-end watches, to boost sales.
“They are working on new products, but it’s probably still too early to see much at this point,” said Brian Yarbrough, an analyst at Edward Jones & Co. “I just don’t see a lot of catalysts to really get the stock going.”
Tiffany also said earnings in the year through January will fall by a mid-single-digit percentage rate. The company had previously said profit would be unchanged to down by a mid-single-digit percent.
The shares fell 4.5 percent to $61 at 6:50 a.m. in early trading in New York. Tiffany had slid 16 percent this year through Tuesday.
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