Tiffany & Co. has returned to profitability during the second quarter of 2020 behind meaningful sequential improvements in monthly worldwide net sales from May to July. Worldwide net sales for the quarter were 29% below the second quarter of the prior year, after having been down 45% during the three months ended April 30, 2020 (“first quarter”) as compared to the prior year, as per a statement from the company.
In the first half, worldwide net sales declined 37% from the prior year to $1.3 billion and comparable sales declined 34%. Net loss was $33 million as compared to net earnings of $262 million in the prior year, and net loss per share was $0.27 versus net earnings per diluted share of $2.15 in the prior year.
In the second quarter, worldwide net sales declined 29% from the prior year to $747 million and comparable sales declined 24% from the prior year. Net earnings of $32 million were 77% lower than the prior year’s $136 million, and net earnings per diluted share were $0.26 versus $1.12 in the prior year.
Alessandro Bogliolo, Chief Executive Officer says, “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. Retail sales in Mainland China began to rebound in April and continued to accelerate in May, during which retail sales increased by approximately 90% as compared to the same period in the prior year.
On the new products front, the Tiffany T1 line, our newest gold and gold with diamonds jewellery collection, continued to do very well in the second quarter both in Mainland China and globally. I firmly believe that Tiffany’s best days remain in front of us because of the team’s demonstrated agility in response to unforeseen hurdles and our stated strategies, which continue to prove sound. Our second quarter results and August trends to date, in light of these challenging times, confirm the power and resilience of this venerable Brand.”
Aruna Gaitonde, Editor in Chief of the Asian Bureau, Rough&Polished
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