Luxury jeweller Tiffany is cutting jobs after the strong dollar stung profits over the key holiday shopping season.
The retailer warned on Tuesday that earnings for the 12 months to the end of January will now be about 10 per cent lower than the previous year, a steeper drop than the 5 per cent to 10 per cent it had earlier forecast.
A strong dollar once again took the blame at Tiffany, which said the greenback’s rally over the last 18 months continues to hurt the value of overseas sales and temper the spending of foreign tourists in the US.
Frederic Cumenal, the retailer’s chief executive, said “we believe overall sales results were negatively affected by restrained consumer spending tied to challenging and uncertain global economic conditions and we expect 2015 earnings to come in at the low end of our previously-set range of expectations.”
Tiffany didn’t detail how many jobs it is cutting, but said it’s taking a 4 cent a share charge in the fourth quarter for “staff and occupancy reductions.”