Tiffany & Co reports better-than-expected quarterly results
The American fine jeweler designer and retailer – Tiffany & Co posted Q3 2020 earnings that beat estimates.
In Q3, the company had an EPS of $1.11, topping the $0.66 estimated. Its net profit came in at $1.01 billion, beating the $980.71 million consensus.
The increases were driven by a 30% rising in sales in the Asia-Pacific region. However, in the States, sales contracted 16%. On the other side, due to the pandemic, Tiffany had to invest in its online business leading to a 92% surge in online sales.
“We had a strong third quarter... which speaks volumes about the enduring strength of the Tiffany brand and gives us confidence as we enter the important holiday season,” stated the company’s CEO Alessandro Bogliolo.
For Q4, Tiffany expects its digital sales to decline by a mid-single-digit, while the market is looking for a 3% decrease.
Moreover, the French luxury goods giant LVMH will finally buy Tiffany & Co. The takeover will cost LVMH $15.8 billion, $425 million lower than the previously stated amount. The deal has already received regulatory approval and is to come through in early 2021.
Following the news, Tiffany stock price gained 0.17%.
Read here about the latest quarterly earnings!
Sources: cnbc.com, yahoo.com