Tiffany & Co. has lowered its earnings expectations for the year after a weak second quarter, a drop attributed to the strong American dollar.
The report shared sales and earnings for the quarter ending July 31.
“In light of the difficult environment exacerbated by the strong dollar and ongoing external uncertainties, we are tempering our full year earnings forecast,” said CEO Frederic Cumenal. “However, we remain focused on pursuing longer-term growth opportunities that strengthen Tiffany’s position among the world’s important luxury brands.
“While the adverse effects from the strong dollar have been even more significant than initially expected, we met our overall expectations in the first half of the year,” he added.
Highlights from the report:
• Worldwide net sales were $991 million, down slightly from $993 million the previous year.
• Net earnings were $105 million, down 16 percent from $124 million the previous year.
• Net earnings for the year are expected to be 2–5 percent below the previous year.