Tiffany reports fall in both Q3 and FY earnings

Tiffany has reported a decline in net earnings for both its third quarter and year-to-date results. For the third quarter ending 31 October, net earnings were down 17% at $78m (£59.4m) compared to the prior year’s $95m (£72.4m). In the year-to-date, net earnings were 11% lower at $340m (£259.2m), compared to the $382m (£291.2) reported in 2018. The decline in earnings was attributed to lower operating margins, higher effective income tax rates for the third quarter, and a lower effective income tax rate in the year-to-date period. Meanwhile, worldwide net and comparable sales remained unchanged at $1bn (£762m) in the third quarter, but on a constant-exchange-rate basis, both sales increased 1% from the year prior. In the year-to-date period, worldwide net sales fell 2% to $3.1bn (£2.4bn), while comparable sales fell 3% from the previous year. Net sales were unchanged while comparable sales declined 1% on the constant-exchange rate basis. News of these results comes only a week after LVMH acquired the jewellery giant in a £12.5bn deal. Alessandro Bogliolo, CEO, said: “Our underlying business remains healthy with sales attributed to local customers on a global basis growing in the third quarter, led by strong double-digit growth in the Chinese Mainland offset in part by softness in domestic sales in the Americas. “We are continuing to amplify the brand with the recent colourful extension of Tiffany T, the launch of the men’s collection, the unveiling of the Tiffany and Love fragrance pillars and our ‘Very, Very Tiffany Holiday campaign.” Bogliolo added: “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.”