Tiffany 9M slides by 2%
Tiffany & Co reported its financial results for the three months, 3Q and 9M-YTD ended October 31, 2019. Worldwide net sales for the third quarter were unchanged from the prior year and decreased 2% in the year-to-date period.
On a constant-exchange-rate basis, which excludes the effect of translating foreign-currency-denominated sales into U.S. dollars, worldwide net sales for the third quarter were 1% above the prior year and unchanged in the year-to-date period.
Net earnings declined in both periods, reflecting lower operating margins, a higher effective income tax rate for the third quarter and a slightly lower effective income tax rate in the year-to-date period, in each case, as compared to the prior year.
Alessandro Bogliolo, Chief Executive Officer, 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 continuing to amplify the Brand with the recent colourful extension of Tiffany T, the launch of the men’s collection, the unveiling of the Tiffany & Love fragrance pillars and our, Very, Very Tiffany Holiday campaign.”
Mr Bogliolo concluded, “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.”
In the third quarter, worldwide net sales of $1.0 billion and comparable sales were unchanged from the prior year; on a constant-exchange-rate basis, net sales and comparable sales increased 1% from the prior year. Worldwide net sales and comparable sales, excluding the Hong Kong market in both years, increased by 4% and 3%, respectively, from the prior year. The effect of foreign currency translation was not significant.
Net earnings of $78 million were 17% lower than the prior year’s $95 million, and net earnings per diluted share were $0.65 versus $0.77 in the prior year.
In the year-to-date, worldwide net sales declined 2% to $3.1 billion and comparable sales declined 3% from the prior year; on a constant-exchange-rate basis, net sales were unchanged from the prior year and comparable sales declined 1%. Net earnings of $340 million were 11% lower than the prior year’s $382 million, and net earnings per diluted share were $2.80 versus $3.08 in the prior year.