Tiffany & Co. on Thursday reported a slight boost in fiscal second-quarter profit as lower costs offset a decline in sales.
The New York-based company continues facing pressure on international sales from a strong dollar while also contending with softer sales to U.S. customers and tourists.
The luxury jeweler reported a less than 1 percent boost in in profit to $105.7 million, or 84 cents per share, as sales dropped 5.9 percent to $931.6 million. The profit results surpassed Wall Street expectations, with the average estimate of nine analysts surveyed by Zacks Investment Research was for earnings of 71 cents per share. But, it fell short on revenue, with six analysts expecting $933.3 million.
Sales fell in every region of the world, with the exception of growth in Japan. Similarly, same-store sales also fell in every market except Japan.
“The global environment continues to reflect well known challenges that we believe have had broad effects on spending by local customers, as well as foreign tourists, especially from China,” said CEO Frederic Cumenal.
Tiffany shares have decreased nearly 10 percent since the beginning of the year, while the Standard & Poor’s 500 index has increased slightly more than 6 percent. The stock has fallen 17 percent in the last 12 months.