Tiffany & Co. (NYSE: TIF) in the first quarter of FY 17 has posted lower than expected quarterly sales and a drop in comparable sales due to lower spending by tourists and domestic customers in the Americas, its largest market. TIF has been struggling to attract young shoppers, particularly in the Americas, as consumers shift to cheaper, chic brands such as Pandora A/S and Alex and Ani. Overall, the net income has increased to $92.9 million in Q1, from $87.5 million, a year earlier. As a result, the stock lost over 7.1% on May 24th, 2017 (as of 9:41AM EDT; Source: Google finance).

Tiffany in the first quarter of FY 17 has reported the adjusted earnings per share of 72 cents, beating the analysts’ estimates for the adjusted earnings per share of 70 cents. The company had reported the adjusted revenue growth of $899.6 million in the first quarter of FY 17, beating the analysts’ estimates for revenue of $913.71 million. Further, the comparable-store sales in the Americas, which account for nearly half of Tiffany’s revenue, fell 4 percent, while the company posted a 3 percent decline in the Asia-Pacific region in the first quarter due to lower spending by Chinese tourists. The analysts polled by Consensus Metrix had expected a 0.5 percent drop in the Americas and a growth of 1.3 percent in the Asia-Pacific region in the quarter ended April 30^th. Worldwide sales at stores established for more than a year fell 3 percent for the sixth straight quarter, compared with a 1.1 percent rise expected by Consensus Metrix. TIF has struggled with weak sales as competition intensifies from online players like Amazon and Blue Nile. It’s also lost some of its luster with millennials. Frederic Cumenal had stepped down In February less than two years after being tasked with reviving the brand. Chairman and one-time CEO Michael Kowalski has taken the lead on an interim basis.

Moreover, Tiffany has not opened any company-operated stores in the first quarter and closed three. At April 30th, 2017, the company has operated 310 stores (124 in the Americas, 84 in Asia-Pacific, 54 in Japan, 43 in Europe, and five in the UAE), compared to 308 stores a year ago (124 in the Americas, 81 in Asia-Pacific, 55 in Japan, 43 in Europe, and five in the UAE).

For FY 17, the company has expected its net sales to increase by a low single-digit percentage. Tiffany stock has risen 44.02% in the last one year (as of May 24th; Source: Google Finance).