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Tiffany Reports Sales Results for Holiday Period



  Tiffany Reports Sales Results for Holiday Period

Business Wire

NEW YORK -- January 10, 2013

Tiffany & Co. (NYSE: TIF) today reported its sales growth for the two-month
period ended December 31^st. Management also updated its financial outlook.

Worldwide net sales increased 4% to $992 million. On a constant-exchange-rate
basis that excludes the effect of translating foreign-currency-denominated
sales into U.S. dollars (see “Non-GAAP Measures” schedule), worldwide net
sales also rose 4% and comparable store sales were unchanged from the prior
year.

Net sales highlights were as follows:

  * Sales in the Americas region increased 3% to $516 million in the holiday
    period. On a constant-exchange-rate basis, total sales increased 2%, and
    comparable store sales declined 2% in the New York flagship store and in
    branch stores. Performance was relatively similar across much of the
    region. Internet and catalog sales rose 4%.
  * Sales in the Asia-Pacific region increased 13% to $187 million. On a
    constant-exchange-rate basis, total sales increased 11% (due to growth in
    Greater China and most other markets) and comparable store sales rose 7%.
  * In Japan, total sales of $153 million were 5% below the prior year.
    However, on a constant-exchange-rate basis, both total sales and
    comparable store sales rose 1%.
  * In Europe, sales increased 2% to $119 million due to mixed performances by
    country. On a constant-exchange-rate basis, total sales also increased 2%
    and comparable store sales were equal to the prior year.
  * Other sales increased 114% to $17 million, largely reflecting the
    conversion in July of five TIFFANY & CO. stores in the United Arab
    Emirates from independently-operated distribution to Company-operated
    retail stores.
  * At December 31, 2012, the Company operated 274 stores (115 in the
    Americas, 65 in Asia-Pacific, 55 in Japan, 34 in Europe and five in the
    U.A.E.), compared with 246 stores (102 in the Americas, 57 in
    Asia-Pacific, 55 in Japan and 32 in Europe) a year ago.

Michael J. Kowalski, chairman and chief executive officer, said, “Holiday
period sales growth was at the low-end of our expectations, and we now expect
that net earnings for the year ending January 31^st will be at the lower-end
of the forecast that we issued on November 29^th of $3.20 - $3.40 per diluted
share. Looking forward, we are formulating plans for continued store expansion
and new product introductions in 2013. We will provide detailed financial
guidance when we report our full year results in March but, due to uncertainty
about general economic conditions in all our major markets, management is
planning sales growth conservatively for 2013 and at this point expects net
earnings growth of 6% - 9%.”

Next Scheduled Announcement:

The Company expects to report its fourth quarter financial results on March
22, 2013. To be notified of future announcements, please register at
http://investor.tiffany.com (“E-Mail Alerts”).

Tiffany & Co. operates jewelry stores and manufactures products through its
subsidiary corporations. Its principal subsidiary is Tiffany and Company. The
Company operates TIFFANY & CO. retail stores in the Americas, Asia-Pacific,
Japan, Europe and the United Arab Emirates, and also engages in direct selling
through Internet, catalog and business gift operations. For more information,
visit www.tiffany.com or call the shareholder information line at
800-TIF-0110.

This document contains certain “forward-looking” statements concerning the
Company’s objectives and expectations with respect to sales, operating margin,
net earnings and growth opportunities. Actual results might differ materially
from those projected in the forward-looking statements. Information concerning
risk factors that could cause actual results to differ materially is set forth
in the Company’s Form 10-K, 10-Q and 8-K reports filed with the Securities and
Exchange Commission. The Company undertakes no obligation to update or revise
any forward-looking statements to reflect subsequent events or circumstances.

                        TIFFANY & CO. AND SUBSIDIARIES
                                 (Unaudited)

NON-GAAP MEASURES

Net Sales

The Company’s reported sales reflect either a translation-related benefit from
strengthening foreign currencies or a detriment from a strengthening U.S.
dollar.

The Company reports information in accordance with U.S. Generally Accepted
Accounting Principles (“GAAP”). Internally, management monitors its sales
performance on a non-GAAP basis that eliminates the positive or negative
effects that result from translating international sales into U.S. dollars
(“constant-exchange-rate basis”). Management believes this
constant-exchange-rate basis provides a more representative assessment of the
sales performance and provides better comparability between reporting periods.

The Company’s management does not, nor does it suggest that investors should,
consider such non-GAAP financial measures in isolation from, or as a
substitute for, financial information prepared in accordance with GAAP. The
Company presents such non-GAAP financial measures in reporting its financial
results to provide investors with an additional tool to evaluate the Company’s
operating results. The following table reconciles sales percentage increases
(decreases) from the GAAP to the non-GAAP basis versus the previous year:

 
                 Two Months Ended December 31, 2012                 Eleven Months Ended December 31, 2012
                                              Constant-                                          Constant-
                 GAAP         Translation                           GAAP         Translation
                                              Exchange-Rate                      Effect          Exchange-Rate
                 Reported     Effect                                Reported
                                              Basis                                              Basis
Net Sales:                                                                                      
Worldwide        4 %          –               4 %                   4 %          (1) %           5 %
Americas         3 %          1 %             2 %                   2 %          –               2 %
Asia-Pacific     13 %         2 %             11 %                  8 %          1 %             7 %
Japan            (5) %        (6) %           1 %                   5 %          (1) %           6 %
Europe           2 %          –               2 %                   2 %          (5) %           7 %
Comparable Store Sales:
Worldwide        –            –               –                     –            (1) %           1 %
Americas         (2) %        –               (2) %                 (2) %        –               (2)%
Asia-Pacific     10 %         3 %             7 %                   2 %          –               2 %
Japan            (5) %        (6) %           1 %                   5 %          (2) %           7 %
Europe           (1) %        (1) %           –                     (2) %        (4) %           2 %
                               

Contact:

Tiffany & Co.
Mark L. Aaron, 212-230-5301
mark.aaron@tiffany.com
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