Tiffany & Co said its jewelry business is rebounding in China after the coronavirus pandemic and its merger with French luxury retailer LVMH is clearing regulatory hurdles.
The U.S. jewelry maker said Tuesday in an earnings release that its same-store sales were down about 44% in the fiscal first quarter as the pandemic shuttered shopping malls and stores across the globe. Yet CEO Alessandro Bogliolo pointed to China as “indicative that a robust recovery is underway.”
TIF swung to a net loss of $64.6 million, or 53 cents a share, from earnings of $125 million, or $1.03 a share, a year ago. Revenue fell 45% to $555.5 million.
Analysts were expecting Tiffany to earn three cents a share on sales of $701 million, but the coronavirus pandemic has made comparisons with estimates difficult to make.
The company has 324 stores worldwide. About 70% of the stores were closed as of April 30, when the fiscal first quarter ended.
Tiffany said its jewelry sales dropped off significantly in the three-month period. Engagement jewelry declined by nearly 50%, more than any other category.
The company said its focus on expanding business in China, investing in its websites and adding new jewelry products prior to the pandemic have made the company more resilient.
In China, same-store sales were down about 85% and 15% during the first and second months of the quarter, but have picked up again in April and May.
Shares galloped $2.53, or 2.1%, to $124.71 early Tuesday.