Tiffany & Co. (NYSE: TIF) today reported its financial results for the
fourth quarter and fiscal year ended January 31, 2013. In the quarter,
worldwide net sales increased 4% and net earnings rose 1%. In the year,
worldwide net sales increased 4% while net earnings declined 5% (or 11%
when excluding nonrecurring items in the prior year). Earnings per diluted share were $1.40 in the
quarter and $3.25 in the year. Management also provided its financial
forecast for the fiscal year ending January 31, 2014.
In the three months ("fourth quarter") ended
January 31, 2013:
Worldwide net sales rose 4% to $1.2 billion. On a
constant-exchange-rate basis that excludes the effect of translating
foreign-currency-denominated sales into U.S. dollars, worldwide net sales rose 5% due to growth in all
regions and comparable store sales equaled the prior year.
Net earnings increased 1% to $180 million, or $1.40 per diluted share,
versus $178 million, or $1.39 per diluted share, in the prior year.
In the 12 months ("full year") ended January 31,
2013:
Worldwide net sales increased 4% to $3.8 billion. On a
constant-exchange-rate basis, worldwide net sales increased 5% due to
growth in all regions and comparable store sales rose 1%.
Net earnings declined 5% to $416 million, or $3.25 per diluted share,
from $439 million, or $3.40 per diluted share, in the prior year.
Net earnings in fiscal 2011 had included $26 million, or $0.20 per
diluted share, for nonrecurring items related to the relocation of
Tiffany's New York headquarters staff. Excluding those nonrecurring
items, net earnings of $3.25 per diluted share were 10% below last
year's $3.60.
Michael J. Kowalski, chairman and chief executive officer, said, "These
quarterly sales results were consistent with the holiday trends we had
issued in early January. While financial results in fiscal 2012 were
disappointing due to lower-than-expected sales growth and pressures on
gross margin, we continued to maintain a longer-term focus on
strengthening global awareness of the TIFFANY & CO. brand and on further
developing compelling product offerings."
Net sales highlights were as follows:
Total sales in the Americas region increased 2% to $620 million in the
fourth quarter and 2% to $1.8 billion in the full year (representing
48% of 2012 worldwide sales). On a constant-exchange-rate basis, total
sales increased 2% in both the quarter and full year; on that basis,
comparable store sales declined 2% in both the quarter and full year
(sales in the New York flagship store declined 3% in both the quarter
and full year, while comparable branch store sales were 2% below both
prior-year periods with no meaningful geographical differences in the
U.S.). Internet and catalog sales rose 6% and 4% in the fourth quarter
and full year.
In the Asia-Pacific region, total sales rose 13% to $254 million in
the fourth quarter and 8% to $810 million, or 21% of worldwide sales,
in the full year. On a constant-exchange-rate basis, total sales rose
10% in the fourth quarter due to sales growth in Greater China and in
other markets and rose 8% in the full year; on that basis, comparable
store sales rose 6% in the quarter and 2% in the full year.
Total sales in Japan declined 6% to $192 million in the fourth
quarter, reflecting a weaker Japanese yen versus the U.S. dollar, and
