Tiffany Says a Rise in Holiday Sales Driven by Growth in China

The luxury jewelry retailer estimates sales during the holiday period rose 1% to 3% from a year earlier.
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Tiffany  (TIF) - Get Report estimated Thursday that sales during the holiday period rose 1% to 3% from a year earlier.

"During this period, we continued to see the Chinese Mainland drive our overall sales growth with a strong double-digit increase, offset by the persisting declines in the Hong Kong market and, to a lesser degree, Japan - which we believe continues to be negatively impacted by the recent increase in the consumption tax," said CEO Alessandro Bogliolo. "We are happy to see sales growth in the Americas, a momentum shift in the region.”

Tiffany said net sales for the interim holiday period rose 5% to 7% in the Asia-Pacific region, while sales in the Americas increased 2% to 4%.

The company said net sales in Japan during the holiday season tumbled 9% to 11%.

Comparable-store sales in the Asia Pacific rose 7% to 9%, rose 2% to 4% in the Americas and tumbled 11% to 13% in Japan.

The luxury jewelry retailer also said in a press release Thursday that its flagship store on 5th Avenue in New York will close in mid-January for renovations. The store will move temporarily to a site a few blocks away in Manhattan.

France's LVMH Group  (LVMHY)  last month agreed to buy Tiffany for $16.2 billion in the biggest-ever luxury goods takeover deal.

LVMH, the French group behind luxury labels such as Christian Dior, Fendi and Givenchy, said it would pay $135 a share for Tiffany. 

The deal values Tiffany, which was founded in 1837 with its first store in downtown Manhattan, at $16.2 billion once debt is included. 

The acquisition is expected to close in the middle of 2020.