Owing to strong dollar, Tiffany & Co. has suffered a loss in the second quarter. The luxury retailer has not been able to be at the level of analysts' expectations. It has reported a 15% reduction in profits and also reduced its guidance for the year.

For the period ending on July 31, Tiffany has earned $104.9 million. In the same period last year it has earned $124.1 million. Chief Executive Frederic Cumenal said that the negative effects were found to be more severe than what was expected before.

Same-store sales in America have declined 2% in the three months ended on July31. On the other hand, global sales were down to $991 million from a year ago. Though Tiffany's sales have been affected, some analysts have affirmed that Tiffany has been navigating the economic situation well. Oppenheimer analyst Brian Nagel said that there was nothing about Tiffany for which I would have raised red flag.

Tiffany said that it has plans to increase prices of some of its products as a way to deal with the strong dollar. It will be trying this strategy for the first time. Tiffany said that it is expecting its full-year earnings between 2% to 5% less than last year's $4.20 per share. FactSet polled analysts and they have predicted earnings of $.4.24 per share.

Worldwide sales at stores open at least one year back dipped 1%. On the other hand, growth in Japan, Europe and the Asia-Pacific region, the figure rose 7%.