A pandemic, an financial downturn and a deal gone awry seem like no match for Tiffany (TIF) – Get Report.
The eggshell blue-branded retailer on Thursday stated August and September sales and operating earnings came in better than expected as the luxurious jeweller reopened shops and ramped up its on-line purchasing expertise.
Tiffany stated world gross sales for the two-month interval declined simply barely from a yr in the past, whereas working earnings that embrace “transaction-related bills” elevated roughly 25%, with gross sales in Mainland China remaining “extraordinarily robust.”
Shares of Tiffany plunged in September after the famed jewellery firm stated it plans to sue French trend big LVMH Moet Hennessy-Louis Vuitton (LVMH) over stalling after which reneging on its proposed $16 billion takeover provide.
The lawsuit follows a number of delays by LVMH to push again the deal amid the coronavirus pandemic and what LVMH has stated have been difficulties in submitting for antitrust clearance with European regulators.
Within the meantime, e-commerce gross sales additionally continued to indicate robust progress, practically doubling within the two-month interval and representing 13% of complete web gross sales year-to-date by September vs. 6% a yr in the past.
The corporate additionally famous that “optimistic gross sales developments are persevering with in October.”
Tiffany stated its money stability continued to be in extra of $1 billion as of the tip of September, and is predicted to be roughly $900 million at year-end, although that may probably be used to pay again deferred prices related to the momentary shutdown of its flagship Fifth Avenue retailer and different deferred retailer openings and renovations.
