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Tiffany Reports Profit, Easing Sales Decline for Second Quarter

Tiffany reported that despite the pandemic, its second-quarter sales decline eased and it returned to profitability after a first-quarter loss.

Tiffany  (TIF) - Get Tiffany & Co. Report shares rose after the luxury-goods chain reported that despite the pandemic, its fiscal-second-quarter sales decline decelerated and it returned to profitability, rebounding from a first-quarter loss.

Tiffany shares recently traded at $123.92, up 2%. They had dipped 9% so far this year through Wednesday.

For the quarter ended July 31, Tiffany reported profit of $31.9 million, or 26 cents a share, down from $136.3 million, or $1.12, in the year-earlier quarter. 

For the first half of the fiscal year, the New York company posted a net loss of $32.7 million.

Second-quarter revenue fell 29% to $747.1 million from $1.05 billion in the year-earlier quarter. That's improved from the first quarter ended April 30, when sales dropped 45% year over year.

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“Increased sales in mainland China and global e-commerce accelerated during the second quarter and propelled our return to quarterly profitability,” Chief Executive Alessandro Bogliolo said in a statement.

“Importantly, our global sales trends have strengthened in August, with preliminary month-to-date worldwide sales through August 25 being slightly positive as compared to the same month-to-date period in the prior year.”

Comparable Asia-Pacific sales rose 17% in the latest quarter, and global digital sales more than doubled.

Meanwhile, a source told Reuters earlier this week that Tiffany and French luxury goods giant LVMH  (LVMH)  would take an additional three months to close LVMH’s $16.2 billion purchase of the U.S. company. 

The deal didn’t close on Aug. 24, as projected in deal documents.

Last November the companies said that LVMH agreed to pay $135 cash a share, or $16.2 billion, for Tiffany.