Published on : Thursday, June 6, 2019
Growing tensions between the US and China have taken a toll on the jewellery maker. Over the holidays, Tiffany said that it was upset by a drop in spending by Chinese tourists, which comprise an important customer group. The company warned that this situation has persisted, with “dramatically lower worldwide spending attributed to foreign tourists.”
This situation might worsen going forward by a warning issued by China about travel in the US. The country’s Ministry of Culture and Tourism cited recent “frequent” shootings, robbery and theft in the US. That’s likely to further decrease Chinese travel abroad along with the purchases that they make there.
Tiffany sees earnings coming under pressure in the second half of this year, partly due to tariffs rising to 25 percent on the jewellery that the company sends to China from the US. The company has also quietly gone on a hiring spree in the past two years, increasing its retail square footage and relocating 15 stores.
Tags: Tiffany & Co.