Posted on 11/29/2016 10:26:09 AM PST by Puppage
MANHATTAN (CNN)– Tiffany, the iconic jewelry retailer, said on Tuesday that sales in the U.S. were hurt by all the chaos surrounding its flagship store on New York City’s 5th Avenue, which just so happens to be neighbors with Trump Tower.
While Tiffany didn’t mention the President-elect by name, it was clear what Tiffany was referring to when it said that there has been “some adverse effect on traffic” at the 5th Avenue location due to “the impact of recent election-related activity.”
Tiffany added that there was “softness” at this store and warned that sales could be hit again in the fourth quarter. The 5th Avenue store accounts for close to 10% of the company’s total sales.
Overall sales for Tiffany’s U.S. and other North American stores in its most recent quarter fell 2% from a year ago.
Security has been heightened on 5th Avenue since the election. There have been some protests outside Trump Tower. But much of the police activity is due to the fact that Donald Trump lives in Trump Tower and has been holed up there since the election.
Tiffany CFO Mark Erceg added during a conference call that there were “minor disruptions to pedestrian foot traffic” around the 5th Avenue store and that Tiffany was “understandably cautious as to how the situation might impact sales over the coming weeks.”
But it’s not all bad news for Tiffany. Sales in China and Japan were strong, helping to lead to a slight increase in overall revenue for the company. It’s the first time Tiffany’s quarterly sales rose since November 2014.
Tiffany CEO Frederic Cumenal said in a press release that the company was “encouraged by some early signs of improvement in sales trends.”
Investors chose to focus on that instead of the weakness in the Big Apple. Shares of Tiffany (TIF)rose 5% in early trading on the news.
Like most retailers, the holidays tend to be a busy time for Tiffany. And the company reaffirmed its outlook for the fourth quarter, a sign that it does not expect any further weakness at its flagship store to drag down results for the whole company.
Nonetheless, it’s a tumultuous time in the jewelry business — putting aside all the election-related madness. Tiffany’s competitor Signet (SIG), which owns discount jewelry brands Kay, Jared and Zales, has been accused of selling fake diamonds.
And online jeweler Blue Nile (NILE) is in the process of being taken private by a group led by Bain Capital.
Bain is the private equity firm co-founded by Mitt Romney, the 2012 Republican presidential nominee who is rumored to be a contender for Secretary of State in Trump’s administration.
So all things considered, Tiffany is actually holding up relatively well — despite a continued police presence in New York that threatens to keep tourists and other shoppers away from 5th Avenue.
I’m sure Trump would be happy to close his account there.
Move.
The “election activity” is the nutcases across 5th (as close as the cops will let them go) holding up “Not my president” signs, taking off their tops to “protest,” etc. Get them out and everything would be fine.
But it’s their right to protest, and if Tiffany’s doesn’t like it, they should tell these people to get a grip.
By the way, access from 5th really is difficult and not very classy - maybe they should make the side door their main door for the interim.
Blame the fact people aren’t buying the incredibly overpriced stuff of Trump. I have to say though, there ain’t nothing like getting that blue box handed to you!
I think Tiffany is right next door to Trump Towers, they haven’t complained before, in fact they love being next door...so what is the problem did you say???
NYC restrictions forced that retail presence on the first floor, in downtown NYC, in order for TRUMP to build TRUMP TOWER. We know additionally that much of the building is apartments and I believe businesses included.
Wonder what Blasio can do with this “issue”? He so loves to make anything he can touch, worse.
So why block off the intersections and main roads? I didn’t think that happened from the Tea Party Protesters, did it?
I doubt it. What’s hurt Tiffany is the 0bamaEconomy!
Did Obozo ever have a “security circus?”
I would just like the box, LOL! There doesn’t even have to be anything in there.
You can buy them on eBay; I psyched my Sister with one in the past.
More traffic fewer sales?
People that want to shop in Tiffany’s on Fifth Avenue, NYC will let nothing stop them from going there. This article is pure rubbish from A-Z!!!
Tiffany is a public company. They are required to make certain disclosures if they project negative financial performance. I think they handled it pretty well. As a shareholder I hope their sales picture improves, as I’m sure Trump does. Hell, he’s probably their landlord.....
I went there for breakfast and it was terrible. You literally have to bring your own, and then they throw you out for no reason!
Never a problem with the total municipal standstills when King Obama of the Tee Time and the Mooch went anywhere in their million car motorcade, or needed to “play through” the golf course wedding of normal everyday citizens, right? How much business did these two freeloaders lose for Americans?
Well, that’s too bad, but I don’t know how to get around it.
Good one!
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