In an interview after the earnings report, the chief executive of the American jewelry giant admitted that the global luxury industry was dominated by Chinese consumers’spending on tourism channels. He said that during the holiday season, the group’s domestic and international markets were very bleak due to the absence of Chinese people, which Tiffany warned when he released his third-quarter earnings report at the end of November.
On Friday, he admitted that overseas spending by Chinese tourists fell by 23% during the holiday season, which not only occurred in the United States and Hong Kong, but also began to spread to Southeast Asia. He also stressed that “of course, this is due to the exchange rate problem”.
On the other hand, the “many unstable factors and turbulent situations” such as the separation of Britain from Europe, the demonstrations of the “yellow vest” movement in France and the partial closure of the US government have further undermined consumer confidence, thus weakening local demand in Europe and the United States. He said the situation made him “more cautious” about sales and earnings prospects, and predicted that the next few quarters would be “very difficult”.