Tiffany hit by tourists spending less

Jeweler Tiffany saw its worldwide sales fall 3% to $ 1 billion in the first quarter, reflecting the decline in the number of tourists.

At the same time, New York-based sales on a like-for-like basis decreased by 5%.

The company also said it could be affected by tariff increases on its US exports to China, as part of a trade war.

The company said it would now seek to invest in domestic markets around the world, focusing on the local Chinese market.

Sales in the Americas decreased by 4%, mainly due to lower spending by foreign tourists.

Hiking rates

"The Chinese government is pushing for local consumption and we will continue to focus on our marketing in China because demand is very high," Executive Director Alessandro Bogliolo told Reuters.

The United States has more than doubled tariffs on $ 200 billion worth of Chinese goods, intensifying a trade war between them.

Tiffany said that she was prepared to "increase customs duties on jewelry, as the company exports from the United States to China, rising from its current level to a new level of 25% in average".

At the same time, net income of $ 125 million was 12% lower than $ 142 million the year before.

"More net declines"

Mr. Bogliolo said during a conference call that external pressures had had "a significant impact on sales".

"For example, we believe that the strength of the dollar had a significant impact on first-quarter retail sales accredited to foreign tourists in the Americas," he said.

"Our internal estimates indicate that these tourism sales represent a small double-digit percentage of our US retail sales, which are down about 25% from last year, with a more pronounced drop in sales. Chinese tourists. "

But he said he is satisfied with the growth in global sales attributed to local customers and growth in mainland China.

"We are continuing our exciting development in mainland China this year and total sales continue to grow at double-digit local currency rates in the first quarter," he said.