Tiffany's hit by tough markets

Tiffany & Co, the jeweller which counts stars such as Cameron Diaz and Kate Hudson among its fans, yesterday blamed tough markets in the US and Europe as it cut sales and profit forecasts.

The company reported a 1 per cent slide in second-quarter sales in Europe as well as "relative softness" in the UK, where it has 10 major stores. US sales also dipped 1 per cent. Michael Kowalski, chairman and chief executive, said: "Sales growth has been affected by economic weakness in a number of markets."

Sales will now grow by up to 7 per cent this year, below previous guidance of up to 8 per cent, with profits guidance also lowered.