Shares of Tiffany & Co. were hit hard Wednesday after the jeweler said Chinese tourists curtailed their spending.
The stock was down 11.9 percent to $92.51 in pre-market trading as investors digested third-quarter results, which were propped up by locals.
Worldwide net sales rose 4 percent to $1 billion in the quarter as comparable sales increased 3 percent and net income declined 5 percent to $95 million.
Alessandro Bogliolo, chief executive officer, said: “It is worth noting that in the third quarter our sales attributed to local customers continued to grow at a strong rate worldwide and were positive in every region, with particularly strong growth in mainland China. Jewelry volumes also increased in the quarter and year to date. This resulted in mid-single-digit net sales growth in the quarter and even higher growth year-to-date, despite lower-than-expected spending in the third quarter attributed to Chinese tourists in the U.S. and Hong Kong and lower wholesale travel-retail sales in [South] Korea.”