Luxury brands from Prada to Cartier are counting the cost to their businesses of four months of unrest in Hong Kong that has kept tourists away and forced shops to shut, with upcoming results set to show the damage.
After a bumpy few years, luxury brands are re-committing to China's market as a weaker yuan and the US trade war funnel more Chinese high-end spending back home, Tiffany & Co CEO Alessandro Bogliolo said in an interview.
The chief executives of Van Cleef & Arpels, De Beers and Tiffany & Co see strong growth prospects for lab-grown diamonds as fashion accessories but warned that they should not be compared with natural diamonds.
Tiffany & Co tempered its yearly profit forecast on Friday after its holiday sales fell unexpectedly as Chinese tourists spent less globally and the U.S. luxury jeweler faced softer demand in Europe and at home.
Tiffany & Co’s sales in the United States and Hong Kong took a hit in the latest quarter as Chinese tourists spent less than expected, sending the jewelry maker’s shares down nearly 8 percent on Wednesday.
Tiffany & Co’s quarterly results topped Wall Street estimates on Tuesday on strong demand for its jewelry in the Americas and China, prompting the luxury retailer to raise its full-year profit forecast.