Tiffany Is Dragged Down By The Exchange Rate, But Fortunately The T Series Is Still Selling.

Tiffany, the world's second largest high-end jewellery brand, suffered its first decline in sales in 5 years. It is expected that the situation in 2015 will be even worse.

According to its latest report, global sales in the fourth quarter of Tiffany 2014 were $1 billion 290 million, down 1% from the same period last year, lower than the 1 billion 310 million US analysts forecast by Thomson Reuters.

The US jewellery company lowered its future revenue forecast, which is expected to fall by 10% in the first quarter of 2015.

The company's total profit in 2014 reached US $484 million, of which, as of January 31st this year, the net profit in the fourth quarter was US $196 million, which accords with analysts' average expectation.

According to the financial report, the main reason for the fall in sales is the growth of the US dollar against most of the mainstream currencies.

From WAL-MART to yoga apparel retailer Lululemon, even the American light luxury brand.

Recently, they are complaining about exchange rate fluctuations, which makes their overseas sales shrink after conversion.

However, analysts believe that because Tiffany is more dependent on offshore markets, the negative impact of exchange rate fluctuations on Tiffany is even greater.

More than half of the sales revenue came from outside the United States.

Even in the US, overseas tourists account for 1/4 of total sales.

Tiffany flagship store 40% in Fifth Avenue, New York.

They are all contributed by overseas tourists.

However, from November 2014 to January 2015, the US dollar exchange rate increased by about 9%.

According to the US government tourism industry office data, passengers spent $34 billion 550 million during the period, down 1.5% from the same period last year.

In the past, the crowded overseas tourists at Tiffany's flagship store in New York, Fifth Avenue, had already been buying less than before.

In addition to the strength of the US dollar, the poor performance of the Japanese market has also struck Tiffany.

Due to the weakness of Japan's economy, the increase of consumption tax and the fluctuation of exchange rate, Tiffany's same store sales in Japan dropped by 5%, and the overall Japanese market sales fell 13% to $148 million.

Tiffany has 56 stores in Japan, almost occupying 1/5 of the global total.

"The company is facing the uncertainty of the global economy, especially the strong dollar has a certain impact on the overseas income of the company and the consumption of foreign tourists coming to the United States," said Tiffany president and Frederic Cumenal, who will act as CEO in April.

To get rid of it, Tiffany expects to open 10 to 15 new stores, first considering the most powerful Asia Pacific region.

In addition, the design team is also stepping up its efforts to design new jewellery products.

In August last year, the Tiffany T series, the first female design director of Tiffany history Francesca Amfitheatrof's jewelry works, was highly praised.

The alphabet "T" Logo series includes wide buckled open bracelet, Thin Bracelet, necklace of different lengths, pendants, rings and earrings.

The main materials are rosy gold, gold, platinum and 925 silver, some of which are warm white and bright black ceramics.

The price ranges from a few hundred dollars to a maximum of 20 thousand dollars, and the target customers become free and independent urban women rather than men who buy gifts for wives or girlfriends.