According to the European luxury brand Tiffany, the holiday season was not been as good as it had expected. The sales for the season were just a bit lower than expected partly because of the tightening of their purse strings by its Chinese consumers at the time of their vacationing, the company announced on Friday.
According to the company’s sale figures, there was a drop of 1 per cent in the net sale of the jewellery giant globally for the last two months of 2018 even though the company had notched up revenues of $1.04 billion.
“Overall holiday sales results came in short of our expectations,” acknowledged Tiffany CEO Alessandro Bogliolo. “We attribute the difference partly to lower sales to foreign tourists globally — primarily Chinese.”
According to the company, the Chinese travellers found that its products had become a touch too expensive for them to purchase in their signature little blue boxes because of the strengthening of the dollar.
This was opposed to the company reporting continued strong sale growth on the Chinese mainland where the company reported an increase of sale in the double-digits. The CEO added that the lower sales numbers in the Americas and Europe “may have been influenced more than expected by external events, uncertainties and market volatilities.”
The company also had been forced to shut down the shutters of its stores on the Champs Élysées at times during the end of the year because of the year because of street protests in Paris. Another reason cited for the slight decline in sale was accorded to the Brexit uncertainty. Also cited for the diminished sales result was stock market fluctuations.
Tiffany will include digital payment options such as Alipay so that consumers are able to purchases through their smartphone in the United States, announced the company, with the aim of increasing the sale of its products to Chinese tourists in the future.
New York-based Tiffany is now projecting its earnings for the fiscal year ending this month to tilt toward the lower end of the forecast figure between $4.65 and $4.80 per share.
There were a number of other high-end retailers which have reportedly fell shorter than expected in terms of their sale numbers. It was just a day ago that Signet Jewellers Ltd. which is owner of the Kay Jewellers and the Jared chains, reported a fall in sales and cited the very high price cuts because of increasing competition in the weeks before Christmas as the reason for the drop in sale figures.
(Adapted from NYDailyNews.com)