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Tiffany sales down 45% due to store closures

The luxury jewellery maker Tiffany & Co (NYSE: TIF) released its first-quarter 2020 results on June 9. The company worldwide net sales declined by 45% due to the retail stores closed across the global markets over COVID-19 lockdowns. The New York-based company shut down two of their stores during the quarter and It currently operates a total of 324 locations.

Tiffany sales down 45% due to store closures

The luxury jewellery maker Tiffany & Co (NYSE: TIF) released its first-quarter 2020 results on June 9. The company worldwide net sales declined by 45% due to the retail stores closed across the global markets over COVID-19 lockdowns. The New York-based company shut down two of their stores during the quarter and it currently operates a total of 324 locations.

  • Earnings per share (EPS) $0.53 vs. $0.35 expected

  • Revenue $555.5 million vs. $701 million expected

“While the first quarter was very challenging with sales and earnings significantly impacted by COVID-19, the impact of which we expect to negatively affect our full-year sales and earnings relative to 2019, 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, global e-commerce, and new product innovation are paying off - even against the backdrop of a global pandemic.” Tiffany’s CEO Alessandro Bogliolo said.

Worldwide sales numbers in the first quarter:

  • In America, sales were down 45% in the first quarter to $225 million.

  • In the Asia-Pacific region, sales tumbled 46% to $174 million.

  • In Europe, total net sales dropped 40% to $61 million.

  • In Japan, total net sales plunged 40% to $86 million.

Meantime, CEO Alessandro Bogliolo said, “our business performance in mainland China, which was the first market impacted by the virus, is indicative that a robust recovery is underway”. The easing of the lockdown helped the sales in China jumped 30% year on year in April and surged 90% in May after the sales tumbled 85% in February and fell 15% in March.

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Tiffany stock dropped 2% on Wednesday. The stock has a market capitalization of $14.80 billion. The $TIF has 50 days moving average of $126.21 and the 200-day moving average of $130.30. The stock has climbed 34% in the last 12 months.

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