Tiffany lowers profit forecast but pushes ahead with growth

 
Kasmira Jefford
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TIFFANY & Co, the New York-based jeweller, cut its sales and profit forecasts for the second consecutive quarter yesterday after its well-heeled customers trimmed spending in an uncertain economy.

The group lowered its full-year profit outlook by around four per cent, saying it expects sales growth during the end-of-year holiday season to be slower.

In the quarter, global sales rose 1.6 per cent to $886.6m (£561.4m), while net income rose two per cent to $91.8m, slightly shy of Wall Street forecasts. Sales at US stores open more than a year fell five per cent, including a nine per cent drop at its Fifth Avenue store.

Sales also declined five per cent in the Asia Pacific region, as even luxury shoppers in China cut back.

Despite the cautious forecasts, Tiffany is pushing ahead with its expansion and plans to open 28 stores by the end of the year.