Tiffany disrupts expectations from Wall Street on quarterly gains as the jewelry company has seen a surge in sales, more than 70%, in China.
While being purchased by the French-based luxury goods company (LVMH), Tiffany predicts a recovery in demand like other luxury firms as the holiday season approaches. The most considerable sales growth is expected to be seen in inland China and among its tourists who visit fashion capitals in Paris and Milan.
Chief Executive Officer at Tiffany & Co. Alessandro Bogliolo affirms the strength seen in the third quarter, emphasizing the importance of the merger deal with LVMH early next year. The deal came after the two companies went through a huge struggle in October. LVMH takes over Tiffany at $15.8 billion early next year.
According to the jewelry company, sales surge 30% in the Asia-Pacific district. In America, jewelry sales fell 16%, pretty lower than the fall in a quarter earlier. Tiffany forecasts a 7 to 9% income rise in the present quarter.
The U.S. luxury jewelry and specialty firm had to switch to online sales after coronavirus struck the business; digital sales climbed 92% in the quarter.