Presidential Election Casting Shadow Over Tiffany & Co., Cartier

Political uncertainty is discouraging the high-end consumer.

Faced with the prospect of having to pay higher taxes as promised by some U.S. presidential candidates, high-end consumers are clutching their piggy banks a little tighter these days, explains Investor’s Business Daily. The article says that’s one reason why analysts at Cowen & Co. have downgraded the outlooks for luxury retailer Tiffany & Co. and Richemont, the Swiss parent company of Cartier. Beyond the political uncertainty, other factors that Cowen considered in its downgrade are a “reverse wealth effect,” a strong U.S. dollar and a slowdown in China’s economy. Of Tiffany & Co., a Cowen analyst says the lowered outlook was made on “near-term caution that volatile tourism flows and global macro challenges will not be offset by TIF’s improved & innovative product.”

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