Tiffany Was Negatively Affected, And Performance Was Lower Than Expected.

According to the world clothing shoes and hats net, American Jewelry

Tiffany Tiffany&Co. (NYSE:TIF) released the sales data from November to December, which was negatively affected by the consumer spending and the protest of the flagship store in New York, such as the people of Trump. In the two months that should have been the peak season, the company's performance was lower than expected.

In addition, including department stores,

Retailers in the US and Signet Jewelers (NYSE:SIG), an American jewelry company, said sales in the holiday season were lower than expected, saying that the focus of consumers' consumption has shifted to electricity providers, and spending on clothing accessories has gradually decreased.

During the period,

The total sales volume was $966 million, global net sales rose 0.5%, and same store sales fell 2%. Excluding the strong dollar, global net sales rose 1%, while same store sales fell 1%.

By region, strong sales in the Asia Pacific region and Japan have been offset by weak sales in the US and Europe. Net sales and same store sales in North America have dropped by 4%, sales in flagship stores near Trumpt tower in New York have dropped by 14%, sales in Europe have dropped 11%, and sales in Japan have surged 21%.

The company disclosed that in order to replace inventory management and sales system, the company will need to spend 2500 yuan in extra cash this quarter.

In the first three months of October 31st, the company's profits rose 4.5% to $95 million 100 thousand over the same period, and sales rose 1.3%, up from 949 million US dollars in the same period last year to 949 million US dollars, while same store sales fell 2%.

In view of the retail performance in the holiday season, there are industry expectations that Tiffany will decline for the 11 consecutive quarter of same store sales.

The Group expects earnings per share to decline by no more than the median figure in the 2016 fiscal year. The economic environment in 2017 will continue to be sluggish. Analysts expect adjusted earnings per share to be $3.97, up 6.7% over the same period last year.

Since the end of the US presidential election in November 9th, people have expressed their dissatisfaction with the result of President Trump's election to the United States, and have been protesting publicly in public. This has caused potential terrorist attacks and other security threats. Therefore, a large number of police forces have been assembled to maintain order in Trumpt tower. However, the current chaotic situation will cause a blow to the holiday shopping season.

Last November, more than 5000 protesters closed the road from the heavily armed police gathered in the Trumpt tower of New York. The whole block was surrounded by mazes. Secret service agents were everywhere. Tiffany New York flagship store was located on the side of the building. The main entrance of the shop was next to the main entrance of the building. It is worth noting that the flagship store is the largest and most contribution to the sales of Tiffany in the world.

Even if the Tiffany shop is still open, any customer who wants to shop must go through layers of obstacles and protest groups, escorted by Tiffany employees to the store, which is a major blow to Tiffany, which is failing in performance.

As for the huge sale of flagship stores in New York, as early as last November, OliverChen, an analyst at investment analyst Cowen&Co., said that in the short term, the sale of Tiffany flagship stores would be negatively affected by the protests of Trump's people, and would have a big impact on the first few weeks before Christmas. Analysts expect that the Tiffany shop, the most popular flow, will be reduced by half in the fourth quarter of January 2017, and the earnings per share of the company will be reduced by 3 cents.

Some industry analysts point out that the reason why Tiffany has failed is that it has made a mistake, that is, the same old products are sold to young consumers who want to be fresh, and more and more millennials feel that Tiffany is old and outdated.

This phenomenon is particularly evident in the middle and high income millennial generation with annual income ranging from 8 to 150 thousand dollars. Their income is not low, but it is also not known as the rich class. This millennial generation prefers emerging brands.

Therefore, Tiffany has appointed Reed Krakoff as the brand design director and will take office in February 1st. Now the design director Francesca Amfitheatrof will leave to seek other development.

In July last year, Tiffany showed its intention to replace Francesca Amfitheatrof to innovate its brand products.

After taking office, ReedKrakoff will be responsible for the design of luxury jewelry and accessories, and provide creative guidance for brand products in stores, e-commerce platforms, marketing and advertising.

EdwardJones analyst Brian Yarbrough said earlier that in the US, high-end fashion retailing is becoming more and more difficult, and department stores are struggling. Now young consumers are constantly pursuing the novelty instead of having the same product that everyone has. That's why they prefer the Danish jewellery brand Pandora Pandora (CPH:PNDORA) because they can wear thousands of different bracelets on their hands, and you can't have them in Tiffany.

Tiffany group CEO Frederic Cumenal earlier revealed that the group's revenue declined to a certain extent, which was affected by the decline of international tourists, especially the consumption of tourists from China. Analysts said that recently, the exchange rate of the people's currency has depreciated from 3.3% to 6.89 in just 30 working days, which has exceeded the cumulative depreciation rate in the past 10 months, and the weakening trend of the RMB continues. This will continue to inhibit the consumption of Tiffany from Chinese tourists.

As of press release, Tiffany shares fell about 2.5%, at $79.9 per share, and the stock price rose nearly 30% in the past six months, and the market value of the company now is about US $10 billion 100 million.

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