Tiffany & Co’s digital sales jump 123% in the fiscal second quarter

Tiffany & Co. (NYSE: TIF) said on Thursday that its financial performance showed resilience in the fiscal second quarter as it announced to have blown past the analysts’ estimate for profit. The company also said that signs of recovery were evident in sales that it attributed primarily to its e-commerce segment. Tiffany reopened its stores for the public in China in the second quarter that further contributed to upbeat performance.

Shares of the company gained a little under 2% in premarket trading on Thursday. The stock jumped less than 1% on market open as well. Tiffany is now exchanging hands at £94 per share versus a year to date low of £84.31 per share in March. The retailer had a per-share price of £101.50 at the start of 2020. Looking forward to investing in the stock market online? Here’s a guide to buying shares online.

LVMH to buy Tiffany for £12.28 billion

According to Tiffany, its sales in China started recovering in April after months of inactivity due to COVID-19. In May, it saw a massive 90% increase in retail sales in the largest Asian economy.

On an adjusted basis, the U.S. retailer earned 24.26 pence a share in the fiscal second quarter. According to Refinitiv, analysts had anticipated the company to see a much lower 14.40 pence of adjusted earnings per share.

LVMH is currently in the process of buying Tiffany & Co. for £12.28 billion. The deal was expected to close this week but was announced to have delayed by three months on Tuesday.

Tiffany expresses confidence in its cash position

Tiffany expressed confidence in its cash stature on Thursday that it said were sufficiently strong to support its capital requirements and liquidity in the upcoming months. Previously, Tiffany had revealed a 44% decline in comparable-store sales in Q1.

Its e-commerce segment, the speciality retailer said, noted an unprecedented 123% growth in the second quarter. Digital sales were 122% up on an annualised basis in the U.S. and 93% up in the U.K.

In terms of net earnings, the luxury jewellery retailer recorded £24.18 million in the recent quarter versus the year-ago figure of £103.32 million. Its total global sales came in at £566.34 million that represents a 29% decline on a year over year basis. Sales were also lower than £585.22 million that the experts had forecast for Q2.