Tiffany & Co. stated gross sales at its iconic New York Metropolis flagship retailer have been harm by all the post-election exercise happening on the close by Trump Tower.
The shop accounts for lower than 10% of worldwide gross sales for the three- and nine-month durations ending Oct. 31, the corporate stated.
“What we’ve seen has been some opposed impact on visitors in our flagship retailer in addition to a continuation of gross sales softness relative to final yr and to our different U.S. shops this yr,” stated Mark Aaron, Tiffany’s
vice chairman of investor relations, on the Tuesday earnings name, in response to a FactSet transcript. “Due to apparent uncertainty, we’ll keep a cautious outlook within the close to time period, and we can’t present any assurance that gross sales within the fourth quarter and past won’t be negatively affected.”
Since Donald Trump turned president-elect, there has been a heightened police presence in addition to checkpoints and road closings round Trump Tower, which is situated on New York’s Fifth Avenue. Trump lives within the constructing and his firm is headquartered there.
See additionally: Engagement rings get a makeover with personalized styles outshining size
Store Like a Vacation Bot
Actuality examine: Amazon.com does not all the time have the bottom costs. WSJ Private Tech columnist Geoffrey A. Fowler exhibits how you can win at Christmas buying with trendy Santa’s helpers: apps, bots and on-line providers. Photograph: Jason Schneider for The Wall Road Journal
Earlier this month, an estimated 10,000 protesters made their approach up Fifth Avenue to the constructing.
Tiffany’s Chief Monetary Officer Mark Erceg stated the “election-related exercise” triggered “some minor disruptions to pedestrian foot visitors on the retailer.”
Even when they’re minor, the disruptions might have an effect on the subsequent month’s gross sales.
“[G]iven the significance of the vacation promoting season to our flagship retailer, we stay understandably cautious as to how this example may influence gross sales over the approaching weeks,” stated Erceg.
See additionally: Home Depot could be the surprise winner of the holiday shopping season
Learn additionally: Tiffany posts surprise sales rise, overseas gains
Tiffany reported gross sales of $949.three million, up from $938.2 million final yr and exceeding the $924 million FactSet consensus. Worldwide same-store gross sales declined 2%.
Within the Americas, gross sales slipped 2% year-over-year to $417 million. Gross sales declined even additional in Europe, down 10% to $104 million, although gross sales rose four% to $247 million within the Asia-Pacific area, and elevated 13% to $150 million in Japan.
Wanting forward, Tiffany expects full-year fiscal 2016 gross sales to say no by a low-single digit proportion quantity year-over-year, and EPS to fall by a mid-single-digit proportion from final yr’s adjusted EPS.
Tiffany shares closed Wednesday up 2.three% and are up eight.1% for the yr thus far. The S&P 500 index
is up 7.6% for 2016 up to now.