Tiffany & Co. announcing its financial results for the three months (fourth quarter) and 12 months (full year) ended January 31, 2020 reported that net sales increased 3% to US$1.4 billion in the fourth quarter; and were “approximately unchanged” in the full year, as compared to the respective prior year periods.

In the fourth quarter, worldwide net sales and comparable sales, excluding the Hong Kong market in both years, increased by 5% each from the prior year Tiffany noted.    

In the same period, the Company’s net earnings of US$201 million were lower by 2% as compared to the previous year’s US$205 million. Net earnings per diluted share stood at US $1.66 versus US$1.67 for the previous year.

However, the Company pointed out that excluding costs related to the acquisition of the Company by LVMH Moët Hennessy - Louis Vuitton SE (LVMH), in the period, the fourth quarter net earnings were US$218 million, or US$1.80 per diluted share.

For the full year, Tiffany’s worldwide net sales were virtually flat at US$4.4 billion and comparable sales declined 1% from the prior year; on a constant-exchange-rate basis, net sales increased 1% from the prior year and comparable sales were approximately unchanged.

Tiffany reported that its net earnings of US$541 million were 8% lower than the prior year’s US$586 million; and net earnings per diluted share were US$4.45 versus US$4.75 in the previous year. Excluding the costs referred to above, Tiffany’s full year net earnings amounted to US$558 million, or US$4.59 per diluted share.

Alessandro Bogliolo, Tiffany’s Chief Executive Officer, said, “We look back on fiscal 2019 as a year of progress on all of our strategic initiatives. We attribute the acceleration in the fourth quarter across most of our markets to our focus on elevating our sales mix towards higher value items within each jewellery product category, with the largest growth being in our gold and gold and diamond offerings. The higher price points of these items contributed to the approximately 10% increase in our overall average unit retail price this full year compared to the prior year.”

He added: “Our primary focus now is on preparing our Company, business and communities for the COVID-19 pandemic and the return to normal operations. The health and well-being of our employees and customers are critical and we continue to adopt recommended safeguards and plans at our stores, offices and factories as circumstances change.”

Boglio explained that as a result of the pandemic outbreak, the Company had to temporarily close or shorten operating hours of certain stores around the globe. “For example,” he said, “in the Chinese Mainland, since January 24, 2020, we have lost approximately half of our total normal retail trading days as a result of closures or shortened hours of operations.”

Bogliolo concluded, “Due to the pending completion of the Merger, we will not be communicating an outlook for the full year as we have traditionally done.”

Tiffany opened nine Company-operated stores in the full year and closed four. At January 31, 2020, the Company operated 326 stores (124 in the Americas, 91 in Asia-Pacific, 58 in Japan, 48 in Europe, and five in the UAE).

Sales for jewellery categories in the full year were as follows: jewellery collections increased 2%; engagement jewellery declined 2%; and designer jewellery declined 6%. The increase in sales in the jewellery collections category was primarily driven by the Tiffany T collection and High jewellery, partially offset by softness in other collections.

The Company reported that as at January 31, 2020, cash and cash equivalents and short-term investments totaled US$897 million. Total debt (short-term borrowings and long-term debt) of US$1.0 billion represented 31% of stockholders’ equity as compared to 32% a year ago.