Good news: Tiffany is clearing out their boom time baubles and so their profits are naturally way down. In USA their sales are down 20%. A 20% drop in sales with a 76% drop in profits means deep price cutting. Tiffanys is making the right moves.
Their overseas operations sales dropped only a few percents, suggesting the economies overseas are much stronger right now than in the USA.
The travel industry is helping retailers out with their deep discounts. Luxury Hotels are giving rooms away to foreigners to get some revenue. My daughter spent last weekend in New York's Waldorf Astoria stowed away with her Italian family who were guests. With little travel costs and Tiffany's at deep discounts, foreignors shop here. Retailers need to have the ability to ship goods back home for travellers to increase sales.
Tiffany's is still profitable, because they can handle their debt load with lower sales and narrower margins. The missing elements, the desperate question is, what is new?
Anyone with a passion for jewelry can be part of the solution to our economic troubles right now by starting a business that sells to Tiffany's and other such stores. If a person gifted with such a passion is working in another field or worse yet, unemployed, then they are part of the problem.
Tuesday, March 24, 2009
Tiffany's Profits Down 76%
Subscribe to:
Post Comments (Atom)
0 comments:
Post a Comment