Business

Tiffany fails to sparkle as sales keep sliding

Tiffany HardWare Image copyright Getty Images

Tiffany & Co has reported a surprise sales slump in the Americas, its largest market, sending shares lower.

The upmarket jeweller sold fewer products than expected in the three months to April, with like-for-like sales falling 4%.

Tiffany has struggled to attract younger customers as consumers opt for less expensive brands.

Worldwide sales in stores open for more than a year fell by 3% - the sixth consecutive quarter of declines.

Analysts had expected a 1.1% rise and the miss sent shares down more than 7% to $86.51 in morning trading in New York.

The stock has risen more than a third over the past 12 months, however.

Tiffany's net sales rose slightly to $899.6m (£694m), but that was also short of analysts' forecasts.

Net profit for the quarter rose $5.4m to $92.9m (£71.6m) compared with the same period last year.

In January, Tiffany hired former Coach creative director Reed Krakoff as its first chief artistic officer and named pop star Lady Gaga as the face of its fashion jewellery collection, Tiffany Hardware.