Tiffany & Co. Returns To Profitability

Words by Retail Bum

Tiffany & Co. Returns To Profitability
Tiffany & Co. Returns To Profitability

While Tiffany is yet to fully recover from the losses stemming from the economic downturn caused by the ongoing pandemic, the company is starting to swing back to profitability. 

The company saw its Q2 sales fall by 29 percent to $747 million, with comparable sales declining by 24 percent. Those numbers mark an improvement over the 45 percent decline the company saw in Q1. Overall, the company’s net earnings fell by 77 percent to $31.9 million, with gross profit totaling at $461.6 million, which accounts for 61.8 percent of the overall sales.

This improvement was largely driven by digital sales. Tiffany’s eCommerce businesses saw triple-digit growth in the first half of the year, compared to single-digit growth observed in each of the last three years. 

“Globally, our e-commerce business was up 123 percent with key markets such as the United States and the United Kingdom up 122 percent and 93 percent, respectively, during the second quarter,” Tiffany’s CEO Alessandro Bogliolo said. “This puts global e-commerce sales at approximately 15 percent of our total global net sales for the first half of fiscal 2020 versus 6 percent in each of the last three full fiscal years. Excluding Mainland China, where our e-commerce platform celebrated its one-year anniversary late in the second quarter, our global e-commerce business grew 114 percent during the second quarter as compared to the same period in the prior year.”

The company also announced that it was extending the date of the merger with LVMH, which would allow the company to walk away from the deal by November 24. In response, LVMH notified Tiffany that “it reserves the right to challenge the validity of the extension.”

MUST READS
No more posts to show, explore other topics: