Tiffany Lost Half of Its Selling Days in China Since Onset of Coronavirus -- Update
March 20 2020 - 10:52AM
Dow Jones News
By Dave Sebastian
Tiffany & Co. said it has lost about half of its normal
selling days in mainland China since Jan. 24 as the coronavirus
pandemic has led it to shut or shorten operational hours at stores
around the globe.
"Our primary focus now is on preparing our company, business and
communities for the Covid-19 pandemic and the return to normal
operations," Chief Executive Alessandro Bogliolo said Friday as the
company reported its fourth-quarter results.
As of Thursday, the company said it has temporarily closed all
stores in the U.S. and Canada and nearly all stores across Europe
and the U.K.
Mr. Bogliolo said the company won't provide financial outlook as
the famed American jeweler awaits the completion of its takeover by
LVMH Moët Hennessy Louis Vuitton SE, which is buying the company
for more than $16 billion. The companies have said they expect to
close the deal in the middle of this year.
For the quarter ending Jan. 31, which included the onset of the
coronavirus outbreak in China, Tiffany posted net income of $201.2
million, or $1.66 a share, down from $204.5 million, or $1.67 a
share, in the comparable quarter last year.
Excluding acquisition costs, earnings were $1.80 a share.
Analysts polled by FactSet were looking for $1.76 a share in
adjusted earnings.
The company recorded sales of $1.36 billion, up from $1.32
billion in the prior year and meeting analysts' expectations.
Worldwide comparable sales, or those at stores open for more than
12 months, rose 3%, the company said.
Sales in the Americas rose 4% for the quarter, though full-year
sales fell 2% on lower tourist spending. Spending from foreign
tourists has accounted for more than 20% of Tiffany's U.S. sales,
according to Oppenheimer & Co. Inc. estimates.
Asia-Pacific sales rose 8% for the quarter, driven by the
double-digit growth in mainland China but offset by disruptions in
Hong Kong. In Europe, sales rose 4% for the quarter, driven by
local and tourist spending. Quarterly sales in Japan fell 8% after
an increase in Japan's consumption tax took effect in October,
Tiffany said.
Shares were flat at $126 in early morning trading.
Write to Dave Sebastian at dave.sebastian@wsj.com
(END) Dow Jones Newswires
March 20, 2020 10:37 ET (14:37 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.
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