Tiffany & Co has a tourist problem: CEO

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"Tourism is an important part of trade," Bogliolo said. "It's not the most important part, but it's something we have to deal with."

He insisted that the problem did not come from the products, but that he was pleased with the performance of the new collections such as the Tiffany True rings. He said that currency fluctuations were another factor.

Earlier Wednesday, Tiffany reported lower-than-expected same-store sales in all regions, with the exception of the Asia-Pacific region. The New York-based company said growth was limited by lower spending by Chinese travelers in the United States, Hong Kong and Korea. In a teleconference with badysts, leaders said they saw a "clear trend" among Chinese buyers slowing spending outside the continent, due to the government's efforts to promote local consumption. Domestic spending on Tiffany products increased in the last quarter.

While this may hurt sales elsewhere, Bogliolo said it creates an opportunity in China.

"Exactly when sales to Chinese tourists slowed, we went from double-digit growth to much stronger double-digit growth in mainland China," Bogliolo said. "It tells me that Tiffany is relevant to Chinese consumers."

Neil Saunders, managing director of GlobalData Retail, said Tiffany's decision to reposition the brand and attract younger buyers is paying off.

"A few years ago, this group was largely apathetic to Tiffany, believing that the brand was outdated and did not fit their needs and tastes," Saunders said. "In a short time, Tiffany began to change this perception and to demonstrate that she had something new to offer to young consumers."

Bogliolo said the company had been cautious in its amendments because it did not want to alienate Tiffany's existing customers. Sales to new and old customers have increased since the change and store traffic has increased each month this year, he said.

Nevertheless, Wall Street focuses on Chinese tourists. Brian Tunick, an badyst at RBC Capital Markets, said he was "somewhat disappointed" although he "was not completely surprised" by the slowdown in sales in the third quarter. He predicted an underperformance of equities until Chinese spending improves.

Bloomberg