Tiffany indicates coronavirus outbreak will cause significant hit to 2020 results

Tiffany & Co (NYSE:TIF) on Friday indicated that the coronavirus outbreak will cause a significant hit to its results this year. The luxury jewellery group, which has had to shutter stores around the world, said it had lost about half of its operating days in mainland China since the outbreak started. Tiffany earlier this week revealed it would temporarily close several stores, including its flagship Fifth Avenue store in New York, and reduce working hours at other outlets, to contain the spread of the novel coronavirus (COVID-19). READ: Co-Diagnostics fulfills clinical evaluation necessary to expand US coronavirus test sales In a statement, the company, which is being bought by French luxury goods giant LVMH Louis Vuitton Moet Hennessy, warned that the outbreak has had a significant effect on its performance so far this year. But a first quarterly sales rise in a year in the Asia-Pacific helped the company beat analysts’ estimates for same-store sales for its fourth quarter ended January 31, just before the rapid spread of the coroanavirus stalled global economic activity. Same-store sales, excluding the effects of currency exchange rates, rose 3% in the quarter, topping the average analyst estimate.  The group also beat estimates for profit. Excluding items, Tiffany earned $1.80 per share, versus Wall Street expectations of $1.77. The company did not provide a forecast for its current fiscal year, citing the pending $16.2 billion acquisition by LVMH. Tiffany’s stock recently traded up slightly to $126.58 a share in New York.