Tiffany Earnings Up 24 Percent in 4Q
NEW YORK, Feb 25, 2004 (AP Online via COMTEX) -- Tiffany & Co. posted a 24 percent increase in profits in its fourth quarter, helped by robust growth in the United States as well as gains in most international markets.
The results, announced Wednesday, beat Wall Street projections.
The upscale New York-based jewelry retailer said it earned $110.5 million, or 74 cents per share, in the three months ended Jan. 31. That compares with $89.3 million, or 60 cents per share, in the year-ago period.
Analysts surveyed by Thomson First Call expected 70 cents per share.
The results also exceeded Tiffany's estimates that ranged from 68 cents to 71 cents, which were raised in January from a range of 64 cents to 69 cents because of strong holiday sales.
Worldwide sales rose 18 percent to $731.59 million, compared with $619.01 million in the year-ago period.
Excluding the effects of foreign-currency translations, worldwide net sales in the fourth quarter increased 14 percent and sales at stores opened at least a year, known as same-store sales, rose 10 percent.
Same-store sales are considered the best indicator of a retailer's health.
"We are pleased and encouraged to be concluding 2003 on a healthy note in most areas of our business," said Michael J. Kowalski, chairman and chief executive. "Tiffany has maintained its long-term commitment to selective expansion and offering extraordinary products."
U.S. retail sales rose 20 percent to $359.42 million. On a same-store sales basis, sales in the quarter rose 17 percent - up 22 percent at Tiffany's New York flagship store and 15 percent in branch stores.
Sales at its international retail stores rose 18 percent to $273.53 million in the fourth quarter. On a constant-exchange rate basis, international retail sales increased 7 percent.
Direct marketing sales increased 11 percent in the fourth quarter to $76.86 million.
Specialty retail sales increased 8 percent to $21.78 million in the fourth quarter.
For the year, earnings were up 13 percent to $215.5 million, or $1.45 per share, compared with $189.9 million, or $1.28 per share, in the year-ago period. Sales reached $2 billion, up from $1.71 billion in the year-ago period.
Shares of Tiffany were up $1.61 per share, or 4.3 percent, to $38.73 in morning trading on the New York Stock Exchange.
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