Tiffany’s sales and profits decline in third quarter as LVMH waits to take control
The American jewelry company, which has just sealed its sale to LVMH, has closed third quarter ended October 31 with net earnings of 78.4 million dollars.
Tiffany’s turnover shrinks. The American jewelry company, which has just sealed its sale to LVMH, has closed third quarter ended October 31 with declines in both profits and comparable sales.
The jeweler’s sales for the three months ended October 31 inched up to 1.014 billion dollars from 1.012 billion dollars with 4% drop in comparable sales. Moreover, the company’s net earnings fell 17.4% to 78.4 million dollars from 94.9 million dollars a year earlier.
Tiffany has cut off its turnover in most of its operating markets. Revenues in the company’s home market, the Americas, fell 4% to 423 million dollars. Affected by currency translations, the company’s sales in the Asia-Pacific region were flat at 293 million dollars in the third quarter with a comparable decline of 2%.
Tiffany has been acquired by LVMH for 16.2 billion dollars
On the other hand, the company’s sales in Japan continue to be strong and increased 19% to 169 million dollars. The jeweler, like the rest of the luxury companies, has been looking to Asia as a growth engine although it still building up scale.
Between February and October, Tiffany has opened five new stores and has closed another three. On October 31, the jewelry company had a total of 323 stores distributed around the world.
Tiffany has published its results soon after announcing its sale to become part of LVMH. The French luxury conglomerate sealed the deal for a value of 16.2 billion dollars.
“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,” said Alessandro Bogliolo, Tiffany’s chief executive officer, in a statement.
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