Tiffany falls short on earnings and revenues
By Iain Gilbert
Date: Thursday 05 Dec 2019
(Sharecast News) - Luxury jeweller Tiffany posted quarterly earnings and revenues that both fell short of estimates on the Street on Thursday.
Net income decreased 17% to $78m, or $0.65 per share, over the three months ending on 31 October, short of consensus estimates of $0.85 per share, while sales were broadly unchanged at $1.01bn but lower than the $1.03bn analysts were expecting.
Same-store sales were also unchanged year-on-year, shy of the growth of 1.4% analysts had expected. Nonetheless, excluding Hong Kong, where anti-government protests had disrupted commerce, Tiffany said worldwide net sales and sales at stores open at least a year were up by 4.0% and 3.0%, respectively.
The poor figures came just one week after LVMH inked a deal to acquire Tiffany for $16.2bn.
Chief executive Alessandro Bogliolo said: "Our underlying business remains healthy with sales attributed to local customers on a global basis growing in the third quarter, led by strong double-digit growth in the Chinese Mainland offset in part by softness in domestic sales in the Americas.
"We are very excited about the recently announced transaction with LVMH and, pending the required approvals, look forward to becoming part of the LVMH family of exceptional luxury brands."
As of 1605 GMT, Tiffany shares were down 0.14% at $133.53 each.
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