Tiffany & Co’s has announced its triumphant return to “quarterly profitability” in its latest financial report, with even better August performance expected.
It said that its second quarter (ending 31 July) worldwide net sales were down 29% compared to the same period last year.
This was a significant improvement over its first quarter (ending 30 April), which was down 45% on Q1 2019.
This meant an overall net loss for the first half of 2020, however the company boasted of a “return to quarterly profitability” in Q2.
Alessandro Bogliolo, chief executive officer, said: “We were excited to see that the encouraging trends we cited for the first quarter, namely, increased sales in mainland China and global e-commerce, accelerated during the second quarter and propelled our return to quarterly profitability.
“Importantly, our global sales trends have strengthened in August, with preliminary month-to-date worldwide sales through 25 August being slightly positive as compared to the same month-to-date period in the prior year.”
He continued: “Globally, our e-commerce business was up 123% with key markets such as the United States and the United Kingdom up 122% and 93%, respectively, during the second quarter. This puts global e-commerce sales at approximately 15% of our total global net sales for the first half of fiscal 2020 versus 6% in each of the last three full fiscal years.
“On the new products front,” Bogliolo added, “the Tiffany T1 line, our newest gold and gold with diamonds jewellery collection, continued to do very well in the second quarter … and we are excited to be introducing more styles to the collection in the third quarter of fiscal 2020. The success of Tiffany T1 reaffirms our belief that our improved design capabilities, sharpened product strategies and more disciplined execution are being well received by our loyal customers whilst also attracting new customers to the brand.”
This will be welcome news to LVMH as its agreement to purchase Tiffany looms closer.
LVMH missed its deadline for the buyout, which was supposed to be completed earlier this week. Under the pair’s contract, the deadline has now been extended by three months, giving the company until 24 November to close the deal with Tiffany. Read more below: