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Tiffany holiday season same-store sales decline

Tiffany holiday season same-store sales decline

Tiffany & Co. said Wednesday that its same-store sales for the holiday season slid 24 percent primarily on softness at its U.S. stores and warned that the performance would drag down fourth-quarter earnings.
The New York-based company also lowered its full-year profit forecast.
Tiffany's same-store sales results exclude the conversion of foreign currency sales into U.S. dollars.
Same-store sales, or sales at stores open at least a year, are a key indicator of retailer performance since they measure growth at existing stores rather than newly opened ones.
Total sales for the November through December period dropped 20 percent, while worldwide sales fell 21 percent to $687.4 million.
The company blamed tightened consumer spending on current economic conditions and cautioned that the environment will likely remain the same for most of 2009.
The jewelry industry has been squeezed as shoppers have curbed discretionary spending due to the prolonged housing downturn, diminishing credit, escalating food costs and unemployment concerns.
Same-store sales slipped 35 percent in the Americas, with total sales off 30 percent to $385.9 million. For the Asia-Pacific region, same-store sales dipped 13 percent on a constant exchange-rate basis. Total sales edged down 2 percent to $216 million. European same-store sales declined 3 percent on a constant exchange-rate basis, while total sales fell 4 percent to $79.2 million.
"The holiday season represents the largest portion of fourth-quarter sales, so we do not expect any improvement for the quarter that will end on January 31st. Based on that, net earnings will decline in the fourth quarter," Chairman and Chief Executive Michael Kowalski said in a statement.
The company reported earnings of 89 cents per share in the year-ago period.
Tiffany plans to report results on March 23. The company operated 206 stores and boutiques as of Dec. 31.


Updated : 2021-04-15 23:39 GMT+08:00