Tiffany: stock flat despite better-than-expected earnings

(CercleFinance.com) - Tiffany & Co.
has reported better-than-expected third-quarter results on Tuesday, as the company saw a spike in sales in China, even though the shares were flat in early morning trading on Wall Street.

For the three months ended 31 0ctober, the New York-based jeweler posted worldwide net sales of exactly one billion dollars, down 1% as reported, although up 3% in comparable terms.

The company said sales in Mainland China continued to grow sharply in the third quarter, increasing by over 70%, with comparable sales nearly doubling over the period relative to a year ago.

In another positive sign, e-commerce sales finished the third quarter up 92% globally year-on-year, with growth in all markets.

As a result, total e-commerce sales now represent 12% of the company's sales, double the 6% for each for the last three fiscal years.

At the bottom line, net earnings rose to 119 million dollars, 52% higher than last year's 78 million dollars, the group said.

Last but not least, Tiffany said that the completion of its merger with French luxury giant LVMH was expected in early 2021, after months of intense court battles.

Although this report was reassuring, investors were not convinced and the shares were virtually flat this morning on the New York Stock Exchange.

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