Tiffany Lost Half of Its Selling Days in China Since Onset of Coronavirus -- Update

By Dave Sebastian 

Tiffany & Co. said it has lost about half of its normal selling days in mainland China since Jan. 24 as the coronavirus pandemic has led it to shut or shorten operational hours at stores around the globe.

"Our primary focus now is on preparing our company, business and communities for the Covid-19 pandemic and the return to normal operations," Chief Executive Alessandro Bogliolo said Friday as the company reported its fourth-quarter results.

As of Thursday, the company said it has temporarily closed all stores in the U.S. and Canada and nearly all stores across Europe and the U.K.

Mr. Bogliolo said the company won't provide financial outlook as the famed American jeweler awaits the completion of its takeover by LVMH Moët Hennessy Louis Vuitton SE, which is buying the company for more than $16 billion. The companies have said they expect to close the deal in the middle of this year.

For the quarter ending Jan. 31, which included the onset of the coronavirus outbreak in China, Tiffany posted net income of $201.2 million, or $1.66 a share, down from $204.5 million, or $1.67 a share, in the comparable quarter last year.

Excluding acquisition costs, earnings were $1.80 a share. Analysts polled by FactSet were looking for $1.76 a share in adjusted earnings.

The company recorded sales of $1.36 billion, up from $1.32 billion in the prior year and meeting analysts' expectations. Worldwide comparable sales, or those at stores open for more than 12 months, rose 3%, the company said.

Sales in the Americas rose 4% for the quarter, though full-year sales fell 2% on lower tourist spending. Spending from foreign tourists has accounted for more than 20% of Tiffany's U.S. sales, according to Oppenheimer & Co. Inc. estimates.

Asia-Pacific sales rose 8% for the quarter, driven by the double-digit growth in mainland China but offset by disruptions in Hong Kong. In Europe, sales rose 4% for the quarter, driven by local and tourist spending. Quarterly sales in Japan fell 8% after an increase in Japan's consumption tax took effect in October, Tiffany said.

Shares were flat at $126 in early morning trading.

Write to Dave Sebastian at [e-mail]

(END) Dow Jones Newswires

March 20, 2020 10:37 ET (14:37 GMT)

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