Less Retailer Rocket Fuel From the Jet Set

It’s no fun if Holly Golightly is the only one staring in window. (Paramount Pictures) There are a number of retailers known by their iconic flagship, such as Tiffany’s, famous for its 5th Avenue location in New York City. But retailers that depend on such magnet destinations, especially from international tourists, may see a bit of slippage in coming quarters as airlines scale back on overseas flights. Unlike other companies, which are seeing reduced sales because of consumer frugality, these retailers, which cater to the well-heeled, may be hurt by the airline industry’s issues. Bank of America analyst Dana Cohen downgraded shares of Tiffany & Co. and Abercrombie & Fitch Friday morning, citing the decline in air traffic to many gateway cities dampening tourist sales. Both companies rely on this business, and rising fuel... [read full story]