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
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