Tiffany, the luxury jewelry retailer, has reported a 1 per cent decline in holiday sales and lowered its annual forecast, hurt by a slump in Japan, currency fluctuations and a slowdown in its home market.

Sales in November and December fell to $1.02 billion worldwide, the New York-based company said. That was slower than the 4 per cent gain in the period a year earlier.

Tiffany had been counting on the Americas to help offset sluggish results overseas, especially in Japan. That approach faltered over the holidays, when sales in its home region fell 1 per cent to $544 million, compared with an increase of 6 per cent a year earlier. A stronger dollar, meanwhile, ate into international sales, turning 9 per cent growth in Europe into a 1 per cent gain when converted into US currency.

The retailer now expects earnings for the year ending January 31st to be $4.15 to $4.20 a share, compared with a prior forecast of $4.20 to $4.30. – (Bloomberg)