Shares of luxury jeweler Tiffany & Co. (NYSE:TIF) fell as much as 1% in premarket trading Thursday after the company reported earnings and revenue that missed analysts’ expectations.
The New York, New York-based company said third-quarter net income decreased 17% to USD 78 Million from USD 95 Million the year-quarter prior.
For the period ended October 31, Tiffany delivered earnings of USD 0.65 per share, far below analyst estimates of USD 0.85 per share.
Revenue was consistent with the previous year at USD 1.015 Billion, but below expectations of USD1.037 Billion. Same-store sales also remained a constant, unfortunately missing the 1.4% growth analysts were expecting.
Despite these results, Tiffany said worldwide net sales, excluding Hong Kong where protests have disrupted the industry, have increased by 4% and 3% from the prior year.
“Our underlying business remains healthy with sales attributed to local customers on a global basis growing in the third quarter, led by strong double-digit growth in the Chinese Mainland offset in part by softness in domestic sales in the Americas,” Tiffany CEO Alessandro Bogliolo said in a statement.
A week prior to the earnings report, French luxury giant LVMH came to an understanding to acquire Tiffany for USD16.2 Billion, or USD 135 per share, in cash. With both company boards approving the transaction, the deal is expected to close in 2020.
“We are very excited about the recently announced transaction with LVMH and, pending the required approvals, look forward to becoming part of the LVMH family of exceptional luxury brands,” Bogliolo said.