Tiffany & Co's quarterly sales dropped for the first time in five years. There are further expectations that the sale of the American luxury jeweler might decline further.

It is said that a strong dollar keeps away the tourists from its flagship New York jewelry store but also reduces the value of sales overseas.

As per the available data, sales outside the United States account for roughly half of Tiffany's total revenue, while sales among tourists in the past have accounted for a quarter of US sales.

It has been known that Tiffany has been battling with the effects of a strong solar for months, the drop in sale in the fourth-quarter anyhow surprised analysts. Analysts were expecting an increase in Tiffany's sales in the fourth quarter.

The dollar that gained about 9% between November and January is widely expected to further rise this year.

Tiffany, whose shares fell more than 3% on Friday, said they expected a drop of about 10% in the quarter ending April, mostly because of the dollar.

Chief Financial Officer Ralph Nicoletti said, "Tourist purchases are expected to continue to be pressured in the Americas".

The company said that it expects that its profits might fell 30% in the current quarter and more modestly in the second.

As per experts, a recovery in sale of the jeweler in the next two quarters would help in minimal growth in full-year profit from the $4.20 per share earned in the year ended January 31.

Edward Jones analyst Brian Yarbrough said in a statement that Tiffany would meet these targets.

According to the government's Office of Travel & Tourism Industries, tourists nearly spent $34.55 billion in the United States in the November-January period. The figure was 1.5% down from the previous year's data. Tiffany's fourth-quarter revenue slipped to $1.29 billion from $1.30 billion.