For the quarter ended April 30, the upscale jewelry retailer posted a net loss of $64.6 million, or 53 cents a share, swinging from profit of $125.2 million, or $1.03 a share, in the year-earlier quarter. Analysts polled by FactSet anticipated a net loss per share of 4 cents in the latest quarter.
Revenue registered $555.5 million, down 45% from $1.003 billion a year ago. Analysts forecast $692 million for the latest period.
“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,” Tiffany CEO Alessandro Bogliolo said in a statement.
That’s “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.”
China sales swung to growth of 90% in May and 30% in April from drops of 15% in March and 85% in February.
Questions have been raised recently about whether the planned $16 billion purchase of Tiffany by LVMH Moet Hennessy Louis Vuitton (LVMUY) will go through.
Bogliolo’s answer: “I am confident that Tiffany’s best days remain ahead of us and I am excited we will be taking that journey with LVMH by our side.”
Tiffany shares recently traded at $123.20, up 0.83%. The stock has dropped 8% over the last three months.