According to investing.com, total revenue growth was only 1%, while analysts were expecting twice as much. In annual terms, revenue fell by 5.9%.
Demand fell due to the war in Iran
The most important division of the company – Fashion & Leather Goods (clothing, bags and accessories) – showed a decline. Sales in this segment fell 2%, although almost no change was expected. Revenue amounted to 9.25 billion euros – less than forecast and below the level of the previous year.
The company attributed the weak results to the conflict in the Middle East, which had a negative impact on sales. After the publication of the reports, the company’s shares fell by 2.7% in trading in New York.
Tiffany and alcohol met forecasts
At the same time, some areas showed growth. For example, the division of watches and jewelry increased sales by 7% – better than expected. Tiffany & Co. brand showed good results, especially its popular HardWear line.
The alcohol segment (Wines & Spirits) was also stronger than expected, with growth of 5% instead of the expected decline. This was helped by the Chinese New Year, which traditionally increases demand.
By region, Asia (excluding Japan) performed best, with growth of 7%. In the USA sales grew by 3%. In Europe, on the contrary, there was a decline of 3%, which is worse than expected.
Other areas grew weaker or did not grow at all. For example, cosmetics did not show any growth, while the retail division grew by only 4%.
The company said that it remains cautious, but will continue to invest in the development of brands.
