Tiffany & Co. had strong earnings growth in one of its last reports before being taken over by LVMH, helped by a resurgence of demand in China and e-commerce.

Adjusted earnings per share in the third quarter rose to US$1.11. Analysts expected 63 cents.

Key Insights

-Comparable sales in China almost doubled, which harks back to the boom days of that market. China has been a lifeline for luxury brands with consumers keen to get their hands on luxury goods they aren’t able to buy abroad because of the virus.

-After backing out of a deal to acquire Tiffany in September, LVMH will in the end buy the U.S. company in a deal worth US$131.50 a share instead of US$135. The companies revised their terms last month after the threat of a lengthy legal battle. While they’ll avoid that dispute, it’ll still cost Tiffany money.

-Tiffany’s earnings expectations for the fourth quarter exclude certain costs that will take place once the deal closes. These expenses, are set to be “significant” and include mostly adviser fees and costs related to the vesting of outstanding stock-based awards to management.

Market Reaction

-Shares in Tiffany have been trading near the revised deal terms. They closed at $131.48 Monday in New York.