Regency Associates: Joining Macy’s and other high profile retailers, upmarket jeweler, Tiffany & Co has announced it is to layoff an undisclosed number of workers after reporting weaker sales over the holiday season.

Sales of designer jewelry were impacted by the stronger US dollar which saw tourists spend less in its US stores but the company blamed what it called “challenging and uncertain global economic conditions” it surmised had made consumers unwilling to spend. Slower sales in its Asia stores also added to the gloom leading investors to sell Tiffany stock heavily. It fell 5% on the day, adding up to a cumulative 15% drop thus far in 2016.

Tiffany & Co is the latest in a long line of retailers reporting challenging conditions. High-end US retailer Macy’s recently announced 4,000 job cuts earlier this year after reporting woeful holiday season trading while more mainstream retailer, Gap Inc said that it, too, was shutting stores after lackluster sales.

“There’s a clear trend developing here,” said Shem Orbison, Regency Associates’ chief economist.

“Many had hoped that any economic contraction would be restricted to the manufacturing and export sector but news like this can’t be ignored. It clearly shows that the US consumer is just as vulnerable to the effects of the stronger US dollar but what’s more troubling is that this contraction is coming even as oil prices trade at 12 year lows and consumers spend less money on gasoline to fill up their vehicles,” he continued.

Regency Associates says it expects more retailers to join Tiffany & Co in laying off staff and reporting challenging trading conditions.

About Regency Associates
When you make the decision to invest for better returns, you naturally want to make sure that your encounter with the markets is a long and prosperous affair. To achieve the former, you need to seek advice from those with a consistent record of success in securing gains for investors. In a bull market, anyone can make money but it is when the roar of the bear resonates through the world's bourses that superior investment firms like Regency Associates stand head-and-shoulders above the rest.