Analyst cuts rating on Tiffany to 'sell'

Bank of America Securities analyst Dana Cohen expects consumers to soften their luxury spending as the costs of food and gas prices increase and tourism falters. (AP) - A dip in international tourism will crimp Tiffany & Co.'s sales momentum, an analyst said Friday, while cutting her rating on the high-end jewelry retailer to "sell." Bank of America Securities analyst Dana Cohen expects Tiffany's U.S. trends to soften as airlines cut flights to New York and other tourist destinations. Consumers in the U.S. have been holding the line on spending because of rising food and gas prices, along with a tightening credit market. Tiffany's New York flagship store accounts for 20% of U.S. sales, said Ms. Cohen, who noted that international traffic to and from the Big Apple should decline by 19% by the 2009 second quarter. This clearly... [read full story]