Tiffany profit misses estimate on weak demand in the United States, Hong Kong



by   |  VIEW 230

Tiffany profit misses estimate on weak demand in the United States, Hong Kong

On Thursday, the 5th of December 2019, Tiffany & Co., the New York City-based American luxury jewellery and specialty retailer, a majority stake of which was recently bought by the French luxury goods conglomerate LVMH, owner of Louis Vuitton, had revealed its quarterly profit for third quarter of the year that missed an analysts’ estimate by a shocking margin, as a global-scale slowdown had prompted luxury goods’ buyers from all over the world to keep a lid on their balance sheet, while lower spending by foreign tourists in the United States alongside in the China-controlled island city of Hong Kong which was dangling over a blazing protests over the recent past had hit Tiffany & Co.’s operating profit with a major whiplash.

Aside from that, the US-based luxury jewellery manufacturer, had also been exchanging heavy blows with low-priced competitors such as Denmark’s Pandora A/S alongside Signet Jewellers, which in effect had led to a loss of a number of its millionaire clients a majority of which had begun to prefer cheaper alternatives in a cost-slashing attempt.

Meanwhile, according to the NY-based luxury Jeweller’s Thursday’s (December 5th), its net sales in America faltered by 4 per cent, while the jeweller had failed to post a growth in the mainland China, the largest-exporter of jewellery products across the globe mostly due to a mass-scale chaos in Hong Kong alongside a contraction in the Chinese economy.