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Tiffany sees earnings bump during legal dogfight

In the midst of a legal stoush with one-time suitor LVMH, luxury chain Tiffany has seen positive sales momentum carry it through the last two months.

Though worldwide net sales fell slightly, operating earnings grew 25 per cent during August and September compared to the same period last year. And e-commerce sales continued to show resilience, making up almost 13 per cent of total sales for the period – almost double the August – September period last year.

“While we still expect full-year results to be substantially impacted by Covid-19, we are very pleased with the way the business has rebounded following the first quarter and continues to rebound in the third quarter, especially in Mainland China, and to recover in the United States,” said Tiffany chief executive Alessandro Bogliolo.

The business does, however, expect fourth-quarter sales to be under those seen last year, but expects higher earnings to continue.

The earnings announcement came as the business continues its legal battle with LVMH, which committed to purchasing Tiffany & Co. but pulled out on the grounds the business had been mismanaged during the pandemic and that the French government had asked it to delay the acquisition – something Tiffany claims never amounted to a legal restraint.

“LVMH’s specious arguments are yet another blatant attempt to evade its contractual obligation to pay the agreed-upon price for Tiffany,” Tiffany’s chairman Roger Farah said in a statement last month.

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