Tiffany & Co. said the protests and heightened security around the residence of President-elect Donald Trump have hurt customer traffic at its flagship New York store — and the company isn’t sure when things will get better.
The shop on Fifth Avenue, next to Trump Tower, has seen “sales softness” compared with the year before and relative to the company’s other U.S. stores, Tiffany said in a statement Tuesday. The location is Tiffany’s largest.
“The company cannot provide any assurance that sales in that store will not be negatively affected by this activity in the fourth quarter or in any future period,” the jeweler said.
Traffic at the store, which has an entrance next to Trump Tower’s, could be cut in half, Cowen & Co.’s Oliver Chen said in a note this month. The analyst trimmed his fourth-quarter earnings forecast for Tiffany by 3 cents a share.
“Donald Trump’s election victory may cause an unforeseen headwind to the business in the fourth quarter,” and the disruption could linger and deter foot traffic through the key holiday selling season, Ike Boruchow, an analyst at Wells Fargo, said in a note.
Anti-Trump protests have broken out near the residence of the president-elect, and barricades have been erected around the building to control traffic and pedestrians. Tiffany, whose corporate offices also are based in New York, has encouraged customers to enter its store through a side entrance.
Elsewhere, Tiffany’s business showed signs of improvement. The company posted third-quarter earnings and sales that topped analysts’ estimates — led by rebounding demand in Asia — sending the shares up in early trading.
Featured Image: Reuters
(c) 2016, Bloomberg · Stephanie Wong
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