Retailers, consumers and prices
Check Out Line: Diamonds no longer a girl’s best friend?
The company posted a slightly weaker-than-expected first-quarter profit and said sales dropped 22 percent as shoppers avoided jewelry. Companies like Tiffany and even more-affordable peers such as Zale Corp have seen demand hurt in the past year as consumers focus on buying necessities in the recession.
In a sign that maybe things are at least stabilizing, Tiffany maintained its full-year profit outlook. Even better, the U.S. economy contracted slightly less than initially estimated in the first quarter.
However, consumers remain under pressure as plunging home prices, rising unemployment and a new wave of foreclosures are clouding prospects for a quick end to the U.S. real estate debacle.
Also in the basket:
Organic Dairies Watch the Good Times Turn Bad (New York Times)
Hartmarx’s Fate Hangs in the Balance (WWD, subscription required)
Versace’s Business Model Stumbles On The Catwalk (New York Post)