Tiffany says Trump Tower hurt holiday jewelry sales
‘Post-election traffic disruptions’ to blame
Donald Trump proved to be no Santa Claus for Tiffany.
The world-famed luxury jewelry company Tuesday said 2016 year-end holiday sales were lower than anticipated, at least partly due to “post-election traffic disruptions” near Tiffany’s New York City flagship store — which adjoins Trump Tower, the president-elect’s home and business headquarters.
Holiday shoppers found it even harder than usual to get to the Tiffany store and others nearby on Fifth Avenue as the Secret Service and the New York City Police Department increased security and restricted vehicle traffic around Trump Tower following Trump’s Nov. 8 defeat of Hillary Clinton in the presidential election.
Along with shopping, holiday season tourists and others gawked as potential presidential cabinet picks came and went from Trump Tower meetings with the former reality TV star and real estate developer.
Total Americas sales of $483 million and comparable store sales in the region both fell 4% from last year, dragged lower by a 14% drop in sales at the flagship store, Tiffany said.
In all, Tiffany reported $966 million in global sales for the two months that ended Dec. 31, up slightly from the same period last year. Sales growth of 7% in Asia-Pacific and 16% in Japan were largely offset by the decline in the Americas and a 10% sales drop in Europe, the company said. Worldwide comparable store sales declined by 2%.
Global net sales rose 1% from the prior year and comparable store sales dipped 1% when viewed on a constant-exchangerate basis. That excludes the effect of changing sales in foreign currencies into U.S. dollars, the company said.
“These overall holiday period sales were somewhat lower than we had anticipated, but we continue to benefit from a favorable gross margin and prudent expense management,” Tiffany CEO Frederic Cumenal said in a statement issued with the results.
Cumenal forecasts no significant improvement in “macroeconomic challenges” the company faced in 2016 and said Tiffany would remain focused on improving customers’ sales experiences, adding new product assortment and maintaining effective marketing communications and a robust supply chain.
Separately, Tiffany announced that Reed Krakoff, a creative collaborator for the company during 2016, will become its chief artistic officer on Feb. 1.