The American veteran jeweler Tiffany & Co. said that due to the weak tourism consumption in her main market of the United States, the company’s sales in holiday season was greatly affected by this reason, sales of luxury contracted 1.7% year-on-year, the company will be forced to cut jobs.
As of December 31 of the fourth quarter in the first two months, Tiffany’s net sales in the global scope fell 3% year on year in constant currency; net sales fell 6% year-on-year in the real exchange rate; overall same-store sales fell 5% year-on-year.
Due to the decline of sales, replica Tiffany & co jewelry net profit fell 10% year on year in 2016, Tiffany did not disclose details of the layoffs, but it was mentioned that the fourth quarter would generate an additional cost of 4 cents per share because of layoffs.
Tiffany CEO Frederic said that strong dollar exchange rate will continue to cause pressure on us, the sales outside the US and the consumption of tourists have been affected. This trend is expected to continue in 2017. Frederic believes the challenging international economic environment has hit consumer confidence, and caused a negative impact on tiffany sales. Expected that net profit in 2016 will fall to the lowest point in the previous forecast.
Although the 2017 financial plan has not yet been finalized, management believes that due to the high exchange rate of the dollar, as well as the severe international macroeconomic environment, calculated by the actual exchange rate, the next year’s net sales and net income will have a slight decline. The most important reason is that The younger generation has less and less disposable balance, and the cost of living is getting higher and higher, coupled with the prevalence of wearable electronic products. The company added that all of the forecasts are only rough estimate, is not necessarily completely accurate.
In addition, the popularity of jewelry this category has declined in the U.S. market. Market research company Conlumino CEO said,”since the financial crisis began in 2008, the holidays have become increasingly important for jewelry sales, especially Thanksgiving and Christmas. But replica Tiffany & Co jewelry is no longer the Christmas gifts preferred.”
In order to increase sales and brand awareness, Tiffany pays more and more attention to marketing and launch new products. Nearly two years Tiffany signed a number of famous stars as its brand spokesperson, but also invited Lady Gaga endorsement of the latest jewelry series- Tiffany Hardwear, now Tiffany hardwear replica have been sought after by young people who has unique personality. And a lot of new projects have been designed in the original classic series.
Tiffany’s practice is correct, although it has redeemed many customers, but it can not change the fact that layoffs.