Commodities

Tiffany beats profit estimates, signals recovery after pandemic blow

Credit: REUTERS/GONZALO FUENTES

Tiffany & Co, which has delayed the close of its $16.2 billion sale to France's LVMH, on Thursday reported a better-than-expected quarterly profit and signaled an uptick in sales due to recovery in China and online demand.

Compares with estimates, adds segment details

Aug 27 (Reuters) - Tiffany & Co TIF.N, which has delayed the close of its $16.2 billion sale to France's LVMH LVMH.PA, on Thursday reported a better-than-expected quarterly profit and signaled an uptick in sales due to recovery in China and online demand.

The U.S. jeweler said worldwide sales in August so far were slightly positive from a year earlier, as the rebound in second-quarter sales in China extended into the current quarter.

"Increased sales in Mainland China and global e-commerce, accelerated during the second quarter and propelled our return to quarterly profitability," Chief Executive Officer Alessandro Bogliolo said in a statement.

Retail sales in Mainland China began to improve in April and continued to accelerate in the month of May, during which retail sales increased about 90%, Tiffany said.

Excluding items, the company earned 32 cents per share, compared to analysts' average estimate of 19 cents, according to IBES Refinitiv data.

Earlier this week, Tiffany and LVMH, the world's largest luxury group, pushed back by three months the deadline to complete their deal as they seek regulatory approvals delayed by the pandemic.

Tiffany's net earnings fell to $31.9 million in the three months ended July 31, from $136.3 million a year earlier.

Worldwide sales fell 29% to $747.1 million, missing expectations of $772 million.

The company's shares were up 1.5% in premarket trade.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Other Topics

US Markets

Latest Markets Videos

Reuters

Reuters, the news and media division of Thomson Reuters, is the world’s largest international multimedia news provider reaching more than one billion people every day. Reuters provides trusted business, financial, national, and international news to professionals via Thomson Reuters desktops, the world's media organizations, and directly to consumers at Reuters.com and via Reuters TV.

Learn More