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Tiffany Posts a Sales and Earnings Beat on Strong China Demand

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Pandemic be damned, Tiffany  (TIF) - Get Tiffany & Co. Report continues to shine bright with consumers, particularly in China.

Tiffany on Tuesday posted third quarter sales and earnings that beat analysts’ estimates amid strong sales in mainland China as well as online. The famed New York high-end jeweler reported net earnings of $119 million, or 98 cents a share, in the third quarter, up from $78.4 million, or 65 cents a share, in the same period a year ago.

On an adjusted basis, Tiffany said it earned $1.11 a share, well ahead of the 66 cents a share expected by analysts polled by FactSet. Sales rang in at $1.01 billion, down just slightly from a year ago but still above forecasts of $972.5 million. 

Comparable-store sales in constant currency terms jumped 36% in the Asia Pacific region, offsetting a 14% drop in the Americas as well as a 9% drop in Europe and a 5% decline in Japan, Tiffany said.

Sales in mainland China grew “dramatically” in the third quarter, increasing by more than 70%, with comparable sales nearly doubling in that period as compared to the prior year. E-commerce sales, meanwhile, finished the third quarter up 92% globally.

For the fourth quarter, Tiffany said it is expecting a "mid-single-digit percentage" drop in global sales though a "high single-digit increase" in per-share earnings, which will include costs related to the closing of its merger with French fashion giant LVMH Moet Hennessy-Louis Vuitton (LVMH).

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