On the occasion when Tiffany & Co reported its financial results on 9 June for the three months ended April 30, 2020, Alessandro Bogliolo, CEO - Tiffany & Co predicted a robust recovery for the company, according to a report in businesswire.com.
Alessandro Bogliolo said, “While the first quarter was very challenging with sales and earnings significantly impacted by COVID-19, I am confident Tiffany’s best days remain in front of us because there is evidence that the strategic decisions we took to focus on our Mainland China domestic business. First, while sales in key markets like the United States and Japan were down significantly during the first quarter, our business performance in Mainland China, which was the first market impacted by the virus, is indicative that a robust recovery is underway. Retail sales in Mainland China were down approximately 85% and 15% during the first and second months of the quarter, but up approximately 30% during April, each as compared to the same period in the prior year. Moreover, that sequential strength has continued to accelerate with May retail sales in Mainland China up approximately 90% despite global net sales being down approximately 40% in that month as compared to May 2019.”
In comparison, figures worldwide in the first quarter shows that Tiffany’s net sales declined 45% to $556 mln and comparable sales declined 44%; on a constant-exchange-rate basis, net sales declined by 44% as compared to the prior year and comparable sales declined 43%. The net loss was $65 mln, or $0.53 per share, for the first quarter of 2020 compared to net income of $125 mln, or $1.03 per diluted share, in the prior year.
Aruna Gaitonde, Editor in Chief of the Asian Bureau, Rough & Polished
Alessandro Bogliolo said, “While the first quarter was very challenging with sales and earnings significantly impacted by COVID-19, I am confident Tiffany’s best days remain in front of us because there is evidence that the strategic decisions we took to focus on our Mainland China domestic business. First, while sales in key markets like the United States and Japan were down significantly during the first quarter, our business performance in Mainland China, which was the first market impacted by the virus, is indicative that a robust recovery is underway. Retail sales in Mainland China were down approximately 85% and 15% during the first and second months of the quarter, but up approximately 30% during April, each as compared to the same period in the prior year. Moreover, that sequential strength has continued to accelerate with May retail sales in Mainland China up approximately 90% despite global net sales being down approximately 40% in that month as compared to May 2019.”
In comparison, figures worldwide in the first quarter shows that Tiffany’s net sales declined 45% to $556 mln and comparable sales declined 44%; on a constant-exchange-rate basis, net sales declined by 44% as compared to the prior year and comparable sales declined 43%. The net loss was $65 mln, or $0.53 per share, for the first quarter of 2020 compared to net income of $125 mln, or $1.03 per diluted share, in the prior year.
Aruna Gaitonde, Editor in Chief of the Asian Bureau, Rough & Polished
