Adds company comment in paragraphs 3 and 4, mid-term outlook confirmation in paragraph 5

May 7 (Reuters) - Swiss duty-free retailer Avolta AVOL.S reported a fall in quarterly turnover on Thursday and said it would adjust costs to protect profits, cash flow and capital allocation as the Middle East conflict remained a near-term risk.

The company, which runs shops at airports, on cruise liners, in seaports, and other tourist locations worldwide, posted a core turnover of 2.9 billion Swiss francs ($3.72 billion) for the first quarter, down from 3.05 billion a year earlier.

"Current external uncertainties are expected to be temporary in nature," the company said, confirming its medium-term targets.

($1 = 0.7787 Swiss francs)