Tiffany's global net sales up 7% year-over-year to US$952M in two month period ended Dec. 31, driven by 19% jump in Asia-Pacific region, 13% rise in Japan; U.S. sales up 4% to US$503M; same-store sales up 4%
January 10, 2012
– Tiffany & Co. today announced that its worldwide net sales in the two months ended December 31st increased 7% over the prior year, and that management has updated its full year earnings forecast accordingly.
Worldwide net sales rose 7% to $952 million in the holiday period, the result of double-digit sales growth in Asia-Pacific and Japan and smaller increases in the Americas and Europe. On a constant-exchange-rate basis excluding the effect of translating foreign-currency-denominated sales into U.S. dollars, worldwide net sales rose 6% and comparable store sales increased 4%.
Net sales highlights by segment:
-- In the Americas region, which includes the United States, Canada and Latin America, sales rose 4% to $503 million. On a constant-exchange-rate basis, total sales increased 4% and comparable store sales rose 2% (comparable Americas' branch store sales rose 3% and New York flagship store sales declined 1%). Higher sales to tourists from outside the U.S. were partly offset by weakness in spending by U.S. customers. Combined Internet and catalog sales in the Americas were 4% below last year.
-- Sales in the Asia-Pacific region increased 19% to $165 million. On a constant-exchange-rate basis, total sales increased 18% and comparable store sales increased 12% due to growth in most countries.
-- In Japan, sales increased 13% to $160 million. On a constant-exchange-rate basis, total sales rose 5% and comparable store sales increased 6%.
-- Sales in Europe increased 1% to $117 million. On a constant-exchange-rate basis, total sales increased 2% and comparable store sales declined 4%, reflecting modest sales growth in Continental Europe and lower sales in the U.K.
-- At December 31, 2011, the Company operated 246 stores (102 in the Americas, 57 in Asia-Pacific, 55 in Japan and 32 in Europe), versus 232 (96 in the Americas, 51 in Asia-Pacific, 56 in Japan and 29 in Europe) a year ago.
-- Other sales, which primarily include wholesale sales of finished products to independent distributors within emerging markets and wholesale sales of rough diamonds, increased 8% to $8 million.
Michael J. Kowalski, chairman and chief executive officer, said "After achieving very strong and better-than-expected sales and earnings growth in the first three quarters of 2011, sales weakened markedly in the United States and Europe during the holiday season, reflecting restrained spending by consumers for fine jewelry. We are now estimating that earnings per diluted share for the fiscal year ending January 31, 2012 will increase 23% - 25% to a range of $3.60 - $3.65. This estimate compares with a prior forecast made in November of $3.70 - $3.80 per diluted share and our initial fiscal 2011 outlook provided last March of $3.35 - $3.45 per diluted share. All estimates do not include $0.20 per diluted share of nonrecurring expenses."
He added, "We are in the preliminary stages of financial planning for 2012 and will provide more detailed guidance when we report our full year financial results in March. We remain confident of our ability to expand our worldwide presence, to serve the growing global demand for TIFFANY & CO. products and to achieve a solid rate of annual growth in sales and earnings in 2012 despite economic challenges."
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