Tiffany and Co has managed to beat expectations by reporting a net sales decrease of only 1% to $1.008bn (£756m) compared with $1.014bn (£760m) last year in its third quarter financial statement ending 31 October 2020.
The jeweller said the decrease was attributed to cost management schemes and the ongoing impact of Covid-19.
However, the company also reported a marginal increase in its gross profit at $643.5m (£482m) from $625.7m (£469m) the prior year.
Mark Erceg, CFO said that by being “thoughtful and deliberate” about cost management and capex spending, the firm was able to continue funding important strategic growth investments.
Net earnings of $119m (£82m) were reportedly 52% higher than 2019 with $78m (£58m) achieved, while net earnings per diluted share increased to $0.98(£0.73) versus $0.65 (£0.48) in the prior year.
Alessandro Bogliolo, CEO for Tiffany and Co, said: “We had a strong third quarter both in sales on a relative basis and terrific results in profitability on an absolute basis, which speaks volumes about the enduring strength of the Tiffany brand and gives us confidence as we enter the important holiday season.
“We believe that the results we released today demonstrate that our strong continuing execution against the strategic priorities we set three years ago positions us to achieve sustainable sales, margin and earnings growth for this legendary brand.
He added: “Further to continued management focus and investment in that important market, sales in Mainland China continued to grow dramatically in the third quarter, increasing by over 70%, with comparable sales nearly doubling in that period as compared to the prior year.
“In addition, and consistent with our focus, e-commerce sales finished the third quarter up 92% globally as compared to the prior year, performing positively in all markets. As a result, total e-commerce sales represent 12% of total net sales in the year-to-date, as compared to 6% for each of the last three fiscal years.”