Tiffany, which is now being bought by France’s LVMH for $15.8 billion, beat Wall Street expectations for quarterly earnings, as the company benefited from a 70% jump in China sales after improving demand for its goods.
These results heralded a refreshing holiday season for the French jewelry giant and for jewelry companies that were affected by the pandemic in general, and the company focused mainly on the great importance of sales in China to compensate for its sales from tourism, especially from Chinese tourists who visit the clothing and fashion centers in Milan and Paris.
Tiffany sales in Asia and the Pacific increased 30%, while sales in the Americas decreased by 16%, much less than the 46% drop in sales last quarter. Analysts expect a decrease of 3%.
The company also expects an increase of one rank in the revenues of the current quarter, as the Corona crisis forced the company to start investing by working on the Internet and start dealing with the “delivery to parked cars” service as part of the preventive measures imposed by the pandemic, as its electronic sales helped increase overall sales. by 92% in the current quarter.
Tiffany previously announced the partial or complete reopening of its 320 stores worldwide starting October 31 in compliance with local government directives, but by November 20, nearly 60% of its stores in Europe were temporarily closed.
However, analysts are still optimistic that the situation will improve, as there is an increased demand for the company’s website in conjunction with the start of the holiday season.
In another context, the company’s shares rose slightly on the impact of the weak trading volume before the opening of the markets, as its shares rose by a value of 1.11 dollars per share, but this exceeded expectations that predicted a rise in the value of the share by 66 cents only, and the company’s net sales decreased by 1% to reach 1.01 billion At the end of the third quarter on October 31, it also exceeded expectations of a net sales value of only $980.71 million.