Tiffany & Co and the would-be recipients of your generosity are hurting, too.
Luxury retailer Tiffany delivered lumps of coal to investors Monday. It lowered its earnings forecast for the fiscal year ending this month to a range of $4.15 to $4.20 a share and said sales in November and December fell to $1.02 billion world-wide, a 1% decline from a year earlier. Tiffany’s management seems to have been caught off guard by the holiday weakness, something investors should find hard to excuse. As late as November, management was reaffirming its forecast for full-year earnings of $4.20 to $4.30 a share. Yet it isn’t as if there weren’t already signs then that the holidays weren’t shaping up to be as merry. That was particularly so at the Manhattan flagship store, which accounts for about 8% of global sales. Wall Street bonuses, for example, were predicted to decline and the strong dollar was going to sap the buying power of tourists in New York.