Tiffany & Co has this week filed its financial results for what it called a “strong third quarter”, with net sales down a marginal 1% compared to the same period in 2019.
The company reported that worldwide net sales had returned to the billion-dollar mark after a difficult first half of the year.
Net earnings, meanwhile, increased 52% for the third quarter as compared to prior year. This, the company said, reflects higher gross and operating margins and a lower effective income tax rate.
However, worldwide year-on-year net sales for the first nine months of the year declined 25% to $2.3 billion and comparable sales declined 22% from the prior year.
Alessandro Bogliolo, CEO, said, “We had a strong third quarter both in sales on a relative basis and terrific results in profitability on an absolute basis, which speaks volumes about the enduring strength of the Tiffany brand and gives us confidence as we enter the important holiday season.
“I want to commend all our invaluable managers and extraordinary employees for the excellent results achieved in a very, very difficult environment.
“We believe that the results we released today demonstrate that our strong continuing execution against the strategic priorities we set three years ago positions us to achieve sustainable sales, margin and earnings growth for this legendary brand.
“Further to continued management focus and investment in that important market, sales in Mainland China continued to grow dramatically in the third quarter, increasing by over 70%, with comparable sales nearly doubling in that period as compared to the prior year.
“In addition, and consistent with our focus, e-commerce sales finished the third quarter up 92% globally as compared to the prior year, performing positively in all markets.
“As a result, total e-commerce sales represent 12% of total net sales in the year-to-date, as compared to 6% for each of the last three fiscal years.
“Finally, we saw an increase in another important metric – average unit retail price – in the third quarter in response to our strategic initiatives designed to focus consumers on our finest products, both online and in our stores.
“Absolutely noteworthy is the performance of T1, our newest gold and gold with diamonds collection, which was received particularly well in all markets and channels.”
This comes after Tiffany & Co and LVMH put their legal disagreements behind them and agreed to go ahead with the latter’s purchase of Tiffany at a reduced price. Read more below: