Tiffany & Co. Blames Profit Drop on Trump Tower

Tiffany & Co.’s flagship store, located on the same block as the Trump Tower, has taken a 14% drop in sales and they are blaming the daily craziness in front of  Trump Tower for their losses.

The front entrance of Tiffany’s, located at 727 Fifth Avenue, Manhattan, is in extremely close proximity to NYPD barricades, checkpoints, and onlooking tourists, not to mention the scores and scores of journalists, protesters, and police officers.

Normally foot traffic in front of a store would be good for business, but Tiffany & Co. are finding the opposite effect is occurring.Screen Shot 2017-01-19 at 10.12.14 AM

In a new report released Jan. 17, Tiffany & Co. notes that while “worldwide sales for the holiday period (Oct. 31-Dec. 31) were up by $5 million since the previous year, sales dropped in the Americas by a total of 4%.”  But the store’s loss near Trump Tower is even worse, with a 14% drop.

An excerpt from the Tiffany & Co. report:

-In the Americas, both total sales of $483 million and comparable store sales were 4% below the prior year. On a constant-exchange-rate basis, total sales declined 4% and comparable store sales declined 3%.

-Management attributed the lower sales to local customer spending, with a decline in U.S. sales exacerbated by a 14% decline at the Company’s Flagship store on Fifth Avenue in New York, which we attribute at least partly to post-election traffic.

H/T: Forbes

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