Tiffany cuts its full-year profit forecast after sales miss estimates

Tiffany cut its full-year profit outlook after the luxury jeweler blamed “dramatically” lower spending by tourists worldwide for missing estimates for quarterly same-store sales on Tuesday, sending its shares down nearly 5%.

The company said it now expects earnings per share to rise by a low-to-mid-single-digit percentage, compared with prior expectation of mid-single-digit percentage increase.

Tiffany said its the forecast accounted for a number of factors including tariffs increasing on jewelry the company exports from the United States to China.

The weak forecast came at the back of Tiffany falling short of estimates.

For the first quarter, the company’s comparable-store sales, excluding the effects of currency exchange rates, fell 2%, while analysts on average were expecting a 1.16% decline, according to IBES data from Refinitiv.

“Our first quarter results reflect significant foreign exchange headwinds and dramatically lower worldwide spending attributed to foreign tourists,” Chief Executive Officer Alessandro Bogliolo said.

Tiffany’s net income fell to $125.2 million, or $1.03 per share, in the first quarter ended April 30, from $142.3 million, or $1.14 per share, a year earlier.

Net sales fell to about $1 billion, missing the average analyst estimate of $1.02 billion.