Tiffany & Co's worldwide net sales increased 4% to $1.0 billion in the third quarter, with higher spending by local customers noted across the board, but a decline in purchases by Chinese tourists in the United States and Hong Kong put a dent in the jeweler’s Q3 results. The stock market took notice, as shares of Tiffany & Co. plunged 12 percent following their publication of the results, as industry analysts had been anticipating better results.
Arriving at Antwerp’s splendid 19th century Central Station, with its marble staircases, iron and glass vaulted ceiling and gilded details, shoppers visiting Antwerp are filled with high expectations about the jewelry boutiques awaiting them in the world’s diamond capital. For years these expectations were quickly dashed, as consumers were confronted with myriad uninviting and less-than-reputable jewelry shops once they left the station. Where to turn?
The Chinese National Day holiday period - also known as Golden Week - started October 1 and runs until October 7. It is the most important period after Chinese New Year in terms of the number of Chinese travelers, writes Jing Daily.
Luk Fook warns that its profit for the past fiscal year which ended on March 31 is likely to drop by 35 to 45 percent as a result of reduced spending by tourists from mainland China. The strength of the Hong Kong dollar against China's renminbi is also putting Chinese visitors off buying, along with an economic slowdown in the mainland and a rise in the popularity of other tourist destinations.
Shares in Hong Kong-traded Chow Tai Fook Jewellery Group dropped to a one-month low after it announced full-year profit fell as much as 50% as weak Chinese consumer demand hit revenues and the world’s largest jewelry retailer posted hedging losses on gold loans. Profit for the fiscal year that ended March 31 fell 40-50% compared to the previous year, the company said in a Hong Kong stock exchange filing, Bloomberg reported. The company issued a similar warning in November for first-half earnings, which dropped 42% from a year before due to weaker sales in Hong Kong and Macau.
The Antwerp World Diamond Centre (AWDC) has issued a Request For Proposal (RFP) for a "Landmark to increase visibility of Antwerp's diamond industry". The press release reads, "The City of Antwerp and the diamond industry have been inextricably linked for more than 550 years. To celebrate this unique connection, from late 2017 to early 2018 the City will be organizing a diamond year - “Antwerp, shaping the Diamond Story” - that will highlight all aspects of the industry with numerous events.
Lower diamond – and precious metals – prices are helping luxury jeweler Tiffany & Co. which has been hit by currency fluctuations and an uncertain global economy, the firm said in a conference call on Friday, Bloomberg reports. Lower metal expenses have already driven an improvement in profitability, and the benefits from cheaper diamonds will show up in results next year, Tiffany said. The retailer has suffered from lower tourism spending, the strength of the U.S. dollar, and slower demand for luxury goods overseas.
Hong Kong retailers including Chow Tai Fook Jewellery Group Ltd. reported plunging sales over the critical Chinese New Year period as the number of tourist visitors from Mainland China fell. Same-store sales over the January 25-February 14 period plunged 28 percent on the 2015 new-year period, Chow Tai Fook said in a Hong Kong exchange statement on Wednesday. The jewelry retailer also warned of a worse performance in the current quarter compared with the previous one.
Retail sales fell again in October as a decline in Chinese tourists and weak consumer sentiment hurt spending. Sales of jewelry, watches, clocks and valuable gifts in value terms were down 17 percent, following a 22.9 percent drop in September and a 8.8 percent fall in August. Retail sales overall edged down 3 percent from a year earlier to $4.80 billion, following a revised 6.3 percent fall in September, and a 5.3 percent drop in August. In volume terms, October sales climbed 1.2 percent.