Representatives from the Chinese side say they think it likely that Chinese President Xi Jinping will attend the G-20 meeting later this month. But in order to reach a trade...China Economyread more
Software engineers straight out of college often make six-figure salaries, not counting equity compensation.Technologyread more
Wall Street, though, is clamoring for a rate cut, with an 85% chance of a move in July and a 61% probability of three reductions by year's end.The Fedread more
A company spokesperson said the outage was the result of a "an internal technology issue" and was not security related.Retailread more
Using MIT's living wage calculator, CNBC Make It mapped out the minimum amount a single parent must earn to meet their basic needs without relying on outside help in every...Earnread more
The flattening of the yield curve is exuding a bad omen for the stock market if history is any guide.Marketsread more
Hong Kong Chief Executive Carrie Lam announced at a press conference on Saturday that a contentious bill to allow extraditions to mainland China has been put on hold.China Politicsread more
Stratolaunch, the world's largest airplane, which flew once, is up for sale, sources familiar told CNBC.Investing in Spaceread more
Transparency is key… or is it? With the first-ever non-transparent, actively managed exchange-traded fund receiving approval from the SEC, "ETF Edge" goes straight to the...ETF Edgeread more
Mired in a crisis over its best-selling 737 Max plane, Boeing could hand the spotlight over to its rival Airbus at the Paris Air Show.Airlinesread more
A new update to the Apple Watch called watchOS 6 will notify you if the environment you're in is too loud and could damage your hearing.Technologyread more
(Adds CEO quote, updates share price, adds bylines and graphic link)
June 4 (Reuters) - Luxury jeweler Tiffany & Co cut its profit outlook for the year on Tuesday and blamed dramatically lower spending by tourists at its stores around the world for missing quarterly same-store sales estimates, but reassured Wall Street the second half of the year could show improvement.
The New York-based company said tourist-related sales in the Americas were down about 25% from year ago, with sharper declines among Chinese tourists.
Tiffany said it expected stronger second half results as year-over-year comparisons get easier, foreign exchange pressures ease and more new products and associated marketing reach the market.
Chinese tourists, who account for more than a third of global sales of luxury products, are spending more at home, encouraged in part by government efforts to fuel consumption by cutting VAT or import duties. At the same time, the number of visitors from China to the United States fell in 2018 for the first time since 2003.
Relations between the world's two largest economies have nosedived in recent months due to a bitter trade war. After warning Chinese students and academics on Monday about risks involved in studying in the United States, the Chinese government widened its warning to include Chinese companies and tourists a day later.
Chief Executive Alessandro Bogliolo told Reuters on Tuesday part of the company's strategy to offset lost tourist dollars is to invest in domestic markets worldwide, with a focus on the local Chinese market.
"The Chinese government is pushing for local consumption and we will keep on focusing on our marketing in China because there is a very strong demand there," he said.
Tiffany said it now expects earnings per share to rise by a low-to-mid-single-digit percentage, compared with mid-single-digit growth it had forecast earlier.
The retailer said the forecast accounted for a number of factors including a stronger dollar as well as an increase on tariffs on the company exports from the United States to China. Tiffany has decided not to "meaningfully increase" retail prices in China for now, it said.
The jeweler, which tapped model and reality TV star Kendall Jenner to star in its Spring 2019 brand campaign, has added more affordable items like pendants and earrings to appeal to millennials.
The retailer said e-commerce sales continued to grow faster than its overall business. It plans to launch an e-commerce enabled website in China to cater to the fast-growing market.
Shares rose 5%. They had been down more than 2 percent earlier.
Bernstein analyst Luca Solca said, "the shares were already down a lot, and therefore were discounting an unexciting update (results) that was seen likely."
Some analysts also said a lot of the negative trends had already been priced into shares, which have fallen 12% since reporting results in March.
"Tourist spending is likely to be under pressure all year given global economic uncertainties stemming from trade tensions with China," said Retail Metrics founder Ken Perkins.
For the second quarter, the company expects a decline in earnings per share, under pressure from continued lower tourist spending.
Comparable-store sales declined 2%, while analysts on average were expecting a 1.16% drop, according to IBES data from Refinitiv. Including the impact of currency fluctuations, sales fell 5%.
The company's net income fell 12% to $125.2 million, or $1.03 per share, in the first quarter ended April 30. Analyst were expecting the company to earn $1.02 per share.
Net sales fell to about $1 billion, missing the average analyst estimate of $1.02 billion.
(Reporting by Aishwarya Venugopal in Bengaluru and Melissa Fares in New York; Editing by Shinjini Ganguli and Nick Zieminski)