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Tiffany beats profit estimates, signals recovery after pandemic blow

Tiffany beats profit estimates, signals recovery after pandemic blow

FILE PHOTO: A Tiffany & Co logo is seen outside the store on 5th Ave in New York, New York, U.S., March 19, 2019. REUTERS/Carlo Allegri/File Photo

REUTERS: Tiffany & Co , which has delayed the close of its US$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.

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 90per cent, 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 US$31.9 million in the three months ended July 31, from US$136.3 million a year earlier.

Worldwide sales fell 29per cent to US$747.1 million, missing expectations of US$772 million.

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

Source: Reuters

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