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52W HIGH: New 52-Wk High for TIF @ $45.220 up1.34% [delayed]
Ridgeland, MS, OCT 28, 2003 (EventX/Knobias.com via COMTEX) -- This is the 2nd 52 WEEK HIGH alert for TIF in the past 7 calendar days.
The share price for Tiffany & Co (NYSE: TIF) reached a new 52-week high today, trading at $45.220, up $0.600 (1.34%) from its previous close of $44.620.
The Company's previous 52-week high of $45.190 was set 7 days ago on October 21, 2003.
One year ago, the Company's shares closed at $26.150. The price has climbed more than 72 percent since then.
At the time of this alert, the stock had traded 169,600 shares via 170 trades, 85.00% below it's 20day average of 1,131,030 shares.
This new 52-week high currently puts the stock:
9.21% above its 20day Moving Average of $41.408
13.53% above its 50day Moving Average of $39.831
22.73% above its 100day Moving Average of $36.846
The Company last released news on October 24, 2003:
"Zacks Buy List Highlights: R.J. Reynolds, United Microelectronics, Petco, and Tiffany"
TIFFANY & CO
Tiffany & Co., the parent corporation of Tiffany and Company, is an international retailer of products that include fine jewelry, watches and clocks, china, crystal, sterling silver goods, stationery, writing instruments and fragrances. The Company also produces men's ties and fashion accessories. Sales are made primarily through company-operated TIFFANY & CO. stores and boutiques in the Americas, Asia-Pacific and Europe. The Company is a member of the S&P 500 Index.
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ABOUT KNOBIAS: Knobias is a premier financial information provider of trading and investing data covering all U.S. equities for investors and security professionals. Knobias is best described by its three major components: Real-time desktop applications providing quotes, charts, level 2, analysis etc.; Knobias RAiDAR providing thousands of real-time news stories, alerts and documents daily; Knobias fundamentals providing a comprehensive database of fundamental research information.
CONTACT: Knobias.com, LLC
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601-978-3675
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Tiffany & Co. Celebrates Opening of Laurelton Diamonds Facility inCanada's Northwest Territories
NEW YORK, Oct 28, 2003 (BUSINESS WIRE) -- Tiffany & Co. today celebrated the opening of its Laurelton Diamonds cutting and polishing center located in Yellowknife in Canada's Northwest Territories. The Founding Ceremony was attended by local dignitaries and civic leaders, including Northwest Territories Premier Stephen Kakfwi and Yellowknife Mayor Gordon Van Tighem.
Laurelton Diamonds, a Northwest Territories company and wholly-owned subsidiary of Tiffany & Co., has designed this 12,000-square-foot, state-of-the-art facility to ultimately accommodate 75 employees. The skilled workforce, currently in start-up mode with 6 polishers, will play an important role in supporting Tiffany's expanding needs for diamonds of the highest quality.
Tiffany & Co. Chairman Michael J. Kowalski said, "Laurelton Diamonds is an important link in a chain of supply that gives us more control over the sourcing of our diamonds. This new facility also helps achieve our stated objective of providing meaningful economic opportunities to the local community and establishing closer ties to our Canadian partners."
Mr. Kowalski also announced a $25,000 contribution to the Stanton Territorial Hospital Foundation to assist with "Operation Looking Glass," a fundraising effort to purchase endoscopic equipment for the Stanton Territorial Hospital. "Wherever Tiffany is welcomed to a new community, we make every effort to support the work of local institutions and organizations that serve the needs of the community. It is our great pleasure to participate in the fundraising efforts of the Stanton Territorial Hospital."
In 1999, Tiffany purchased a 14.7% equity investment (USD$71 million) in the Canada-based Aber Diamond Corporation, a 40% owner of the Diavik Diamonds Project in the Northwest Territories of Canada. Tiffany also entered into a diamond purchase agreement with Aber to purchase a minimum of USD$50 million in diamonds, subject to Tiffany's quality standards, annually for 10 years.
Tiffany is the first retailer to enter into such an agreement to source rough stones directly from a mine. In addition to establishing a direct supply of high quality rough diamonds, the Diavik mine meets Tiffany's rigorous standards for securing materials in the most environmentally and socially responsible manner. The first diamonds mined under the contract were delivered in March 2003, with the rough sent to Tiffany's new sorting center in Antwerp, which has subsequently sent some of the rough to the Territories to be polished at this new Laurelton Diamonds facility.
Tiffany is also creating business opportunities in the wider community. The company has signed an agreement with the Behcho Ko Development Corporation and the Kitikmeot Corporation that gives the Dogrib and Inuit business groups design and financial support for the development of a Northern inspired jewelry collection and the establishment of related manufacturing and merchandising operations in the North.
Tiffany & Co. is the internationally renowned jeweler and specialty retailer. Sales are made primarily through company-operated TIFFANY & CO. stores and boutiques in the Americas, Asia-Pacific and Europe. Direct Marketing includes Tiffany's Business Sales division, Internet and catalog sales. Specialty Retail primarily includes the retail sales made in Little Switzerland, Inc. stores and also includes consolidated results from other ventures now operated or to be operated under non-TIFFANY & CO. trademarks or trade names. TIFFANY & CO. is a publicly held company with its shares traded on the New York Stock Exchange (symbol: TIF). Additional information can be found on Tiffany's Web site at www.tiffany.com.
TIFFANY & CO. and TIFFANY are trademarks of Tiffany and Company.
SOURCE: Tiffany & Co.
CONTACT: Tiffany & Co.
Mark L. Aaron, 212/230-5301
or
Linda Buckley, 212/230-6577
http://host.wallstreetcity.com/wsc2/Autoflag.html?Button=Get+Story&DB=SQL&SID=301b8406&S...
Target price raised from $33 to $42.
WR Hambrecht Sees Normal Growth Levels for TIF in 2004 [delayed]
Ridgeland, MS, AUG 14, 2003 (EventX/Knobias.com via COMTEX) -- WR Hambrecht reiterated its Buy rating on Tiffany (TIF) and raised its price target from $33 to $42, believing the Co has managed through the difficult environment fairly well and that it has hit a base level and should be able to return to normalized growth levels over the next year. The firm also believes that the tax cuts, leveling off of financial industry layoffs and continued improvement in consumer confidence sets the company up for a decent holiday season.
TIF reported Q2 EPS of 28c, exceeding expectations by 4c, on net sales of $442.5 million, driven by strong comps in the U.S. and improving trends in Japan. As a result, WR Hambrecht raised its 2003 EPS estimate by 5c to $1.40, ahead of mgmt's guidance of $1.33 - 1.38, to reflect the better-than-expected Q2 results. The firm also raised its 2004 EPS estimate from $1.57 to $1.62.
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ABOUT KNOBIAS: Knobias is a premier financial information provider of trading and investing data covering all U.S. equities for investors and security professionals. Knobias is best described by its three major components: Real-time desktop applications providing quotes, charts, level 2, analysis etc.; Knobias RAiDAR providing thousands of real-time news stories, alerts and documents daily; Knobias fundamentals providing a comprehensive database of fundamental research information.
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Zacks Issues Buy Recommendation on Tiffany
Excerpt:
Here is a synopsis of why these stocks have a Zacks Rank of 2 (Buy). Note that a
#2 Buy rating is applied to 15% of all the stocks we rank:
Tiffany & Co. (NYSE:TIF) is the internationally renowned retailer, designer,
manufacturer and distributor of fine jewelry, timepieces, sterling silverware,
and accessories. In the middle of a rough environment, TIF was able to post net
earnings of 24 cents per diluted share in the first quarter, ended April 30,
2003, and net sales at $395.8 million. The earnings result surpassed the
consensus by a penny and eclipsed the year-ago result of 22 cents by +10%.
Meanwhile, net sales advanced by +14% due to growth in U.S. and international
markets. As a result of the quarterly performance, TIF said it remains on track
with the annual expectations for 2003 that it announced in February. The company
said that these results confirm TIF's consistent focus on its proven, long-term
growth strategy is sound. At about the same time, the company's board of
directors increased its quarterly dividend on its common stock by +25% to 5
cents per share from 4 cents, to be paid on July 10, 2003 to stockholders of
record on June 20, 2003. With results like these in a challenging environment,
TIF may be the crown jewel of your portfolio.
All-Star Analyst Dana Telsey Recommends TIF
All-Star Analyst Dana Telsey Recommends the Following Stocks: LTD, COH,TIF, And SPLS
CHICAGO, Jun 11, 2002 /PRNewswire via COMTEX/ -- Consumers are shopping for hot summer deals, while investors are shopping for hot summer stocks. 5-Star analyst Dana Telsey from Bear Stearns Companies, gives investors her insights into the retail sector and which companies should be on investors shopping lists this season. www.allstarpicks.zacks.com .
Here are the details on Analyst Dana Telsey's Stock Picks for today:
Limited Brands, Inc., (NYSE: LTD) formerly known as The Limited, Inc., sells women's and men's apparel, women's intimate apparel and personal care products under various trade names through its specialty retail stores and direct response (catalog and e-commerce) businesses. Most notably, Victoria Secrets, Bath and Body Works, and Express.
The company has been able to manage inventory levels and keep costs low by reducing the number of new stores being opened. This reduction in cost, along with the increased sales have kept operating margins above +15%. The ability to create 360o selling through the Internet, stores, and catalogs has been very profitable.
Coach, Inc. (NYSE: COH) is a designer, producer and marketer of accessories for men and women, including handbags, business cases, luggage and travel accessories, personal planning products, leather outerwear, gloves and scarves.
The company has more room to grow according to Telsey. There are around 400 real malls in the United States and Coach is currently in less than 200. There is also plenty of room to grow overseas, as Tokyo has been a great source of revenue. Japan is said to account for half of the world's luxury spending. As the Coach brand becomes more available, the company is looking for even greater sales growth.
The brand is appealing to customers and the sales have been very strong. The current EPS estimate for 2002 is $1.87 and $2.17 for 2003. Telsey has a 12-month price target between $56-$58.
Tiffany & Co. (NYSE: TIF) is engaged in the business of jewelry making and sales. The company has excellent inventory management and even better margins. The company doesn't put things on sale, so the margins tend to be higher. The prestige of owning a Tiffany piece of jewelry goes a long way.
Based on last years 4th quarter sales, things are looking bright for 2002. The fourth quarter is always the best given it will include Christmas sales. TIF's holiday period is defined by the November 1 - December 31 time frame, and typically accounts for approximately 80% - 85% of total fourth quarter sales.
TIF is a solid brand franchise with a global, multi-channel distribution strategy and tremendous room for growth. In difficult times, Telsey believes there is a flight to quality, something that TIF should benefit from given the strength of its brand. Tiffany's recent financial performance demonstrates the company s ability to effectively manage through a challenging consumer sales slowdown, as evidenced by 2001's continued strict expense control. TIF shares are currently trading around 27.7x 2002 EPS estimates of $1.26, and has a 12-month price target of $38.
Staples, Inc. (Nasdaq: SPLS) is an office supplies retailer with 1,436 office supply stores (as of 2/02) in the U.S., Canada, the UK, Germany, the Netherlands and Portugal. SPLS also operates catalog operations, a contract stationery business and e-commerce sites.
There are several factors that Telsey believes will help increase their gross margins:
First, improving the merchandise mix by focusing on selling to more profitable small business customers and power users should continue to improve the gross margin. Second, increasing the private label assortment should help fuel the gross margin. Third, SPLS is working to realize the most out of its marketing budget. Fourth, there is opportunity to bring the NA Delivery business margins up from their current levels given the fact that the Quill business is much more profitable than the Contract and Staples Business Delivery operations. Fifth, the company will focus on reducing product costs. Finally, the real estate team has also been challenged to reduce the company s rent expense.
She is looking for Long-Term Growth of 15% and estimates EPS to be $.73 in 2002 and $.87 in 2003. She has a 12-month price target of $23.
To get Dana's sector analysis and the complete article click: www.allstarpicks2.Zacks.com .
Tiffany Gets Buy Rating From Wells Fargo
Wells Fargo Securities Initiating Coverage on Tiffany & Co. With BuyRating
SAN FRANCISCO, Jun 5, 2002 /PRNewswire-FirstCall via COMTEX/ -- Paula Kalandiak, luxury industry analyst at Wells Fargo Securities, has initiated coverage on the shares of Tiffany & Co. (NYSE: TIF; $36.30) with a Buy rating and a 12-month price target of $45.
Below are direct quotations from Ms. Kalandiak's research report:
-- We are initiating coverage of Tiffany & Co. shares with a Buy rating
and a price target of $45, or 30.4x our FY03 EPS estimate.
-- We view Tiffany as a core holding based on the company's consistent
execution and brand focus. Tiffany has taken a disciplined approach
to its policy of "growth without compromise," expanding only when it
makes sense, and maintaining control over its brand image, which we
believe is the company's most valuable asset. The Tiffany name has a
long history of association with quality, timeless style, and trust.
Tiffany is led by a strong, seasoned management team that we believe
will successfully steer the company through the currently
challenging economic environment and beyond.
-- The company continues to open new locations at a modest pace,
resulting in at least 5-8% square footage expansion per year, which
we expect to contribute to top-line growth. Furthermore, favorable
demographics (more than 5 million Americans have a net worth of more
than $1 million) and high expected growth of the largest
jewelry-buying demographic in the United States through 2010 should
support increased jewelry sales in this country, for at least eight
more years.
-- We believe that Tiffany's longstanding reputation as a reliable
jeweler offering quality merchandise and timeless style positions
the company to capture additional jewelry spending. We expect
several productivity initiatives, including further manufacturing
and sourcing efficiencies, to yield gross margin expansion, which
should contribute to EPS growth of 10-15% for the next several
years.
-- Shares of Tiffany are currently trading at 24.5x our FY03 EPS
estimate of $1.48, a premium to the luxury industry's average P/E of
18.4x. In our opinion, this premium is warranted given Tiffany's
proven track record as a focused and consistent operator within the
sector, and we believe that the company's consistency in the face of
uncertain times will provide room for further multiple expansion.
-- On May 14, 2002 the company reported its 1Q02 results. EPS of
$0.22 were 10% above the $0.20 that the company had earned in 1Q01
and in line with its upwardly revised guidance. Revenues increased
by 3.2% from 1Q01 revenues to $347.1 million, with each of the
company's three divisions showing growth above 1Q01 results.
Wells Fargo Securities, LLC is a full service investment banking firm. Headquartered in San Francisco with offices in Southern California, the Pacific Northwest and East Coast, Wells Fargo Securities is dedicated to long term relationships using the strength of its equity capital markets and Wells Fargo & Company products to provide outstanding service and support to its clients.
Investments made through Wells Fargo Securities: (1) are not insured by the FDIC; (2) are not deposits or other obligations of, or guaranteed by, Wells Fargo Securities, Wells Fargo & Company or any of its affiliates; (3) are not guaranteed by any Federal governmental agency (excluding U.S. Government and federal agency securities); and (4) are subject to investment risks, including possible loss of principal amount invested.
The study on these pages is not a complete analysis of every material fact regarding any company, industry or security. The opinions expressed herein reflect the judgment of the author at this date and are subject to change without notice. Facts have been obtained from sources considered reliable, but are not guaranteed. Wells Fargo Securities, its directors and employees and their families may have a position in the securities of the companies described herein, and may make purchases or sales while this report is in circulation. Additional information is available upon request.
Wells Fargo Securities, LLC is a member of the National Association of Securities Dealers, CRD number 7665.
Tell Us What You Think -- Click Here
tbutton.prnewswire.com/prn/11690X92291882
SOURCE Wells Fargo Securities, LLC
CONTACT: Justine Davies of Wells Fargo Securities, +1-415-954-0671
URL: www.fsvk.com
www.prnewswire.com
Tiffany quarterly profits up on improved sales
May 14, 2002 09:05:00 AM ET
Update 1
(Adds analyst comment, byline)
By Ellis Mnyandu
NEW YORK, May 14 (Reuters) - Luxury jeweler Tiffany & Co. (TIF) on Tuesday said first-quarter earnings rose 6 percent on improved U.S. sales and more purchases of cheaper but higher-margin items like sterling silver rings and bracelets.
Tiffany posted net income in the quarter ended April 30 of $32.7 million, or 22 cents a share, compared with $30.7 million, or 20 cents in the year-earlier period.
On April 25, the New York-based retailer boosted its forecast to 22 cents a share, from a range of 16 cents to 17 cents previously. Analysts polled by research firm Thomson Financial/First Call then ratcheted up their estimates to match Tiffany's projection.
Looking ahead, the 165-year-old company -- known for ultra high-end items like million-dollar engagement rings and sterling silver baby rattles -- forecast second-quarter profits at or tending toward the lower end of Wall Street's current expectations.
Tiffany said even though it is introducing new jewelry designs to keep customers buying, it sees the U.S. economic environment challenging in the near-term.
The retailer -- also known for its robin's-egg blue jewelry gift boxes -- projected an improvement in business conditions in the second half of the year.
David Schick, an analyst at SunTrust Robinson Humphrey said latest results underscored good business execution by Tiffany in a tough environment.
"Tiffany does not press panic buttons ... They make a very slight series of long-term business improvement decisions, like internal manufacturing and adding up more robust (product) offerings," he said.
UNSETTLED ENVIRONMENT
The jeweler projected second-quarter profits to range from 22 cents to 24 cents a share, which compares with a First Call consensus estimate of 24 cents. Analysts estimates range from 22 cents to 26 cents.
"Tiffany's internal initiatives are exciting and promising. However, the external environment remains unsettled with an uncertain near-term outlook," Tiffany President and Chief Executive Michael Kowalski said in a statement.
Tiffany attributed the earnings gain to gross margin improvement, product sourcing efficiencies and a favorable sales mix.
The company said sales in the latest quarter rose 3 percent to $347.1 million from $336.4 million in the prior year. Sales from stores open at least a year or same-store sale rose 2 percent, with the company's flagship New York store in Manhattan showing a same-store sales drop of less than 1 percent.
International sales rose a slack 1 percent to $147.6 million, while same-store sales in Japan -- the company's key market outside the U.S. -- also fell by a percent.
For the third-quarter, Tiffany forecast profits to range from 18 cents to 20 cents a share, and for the fourth-quarter it projected earnings between 64 cents and 67 cents a share.
Tiffany's business has suffered broad weakness since the middle of last year, mainly as a result of the U.S. economic slump and from the after-effects of the Sept. 11 attacks which kept tourist customers away.
Japan's economic woes have also not helped the company which operates boutiques in the Americas, Asia-Pacific and in Europe. It also sells its products on the Internet and via catalog operations. REUTERS
© 2002 Reuters
Back to Recent News
Tiffany Banks on Better Times Ahead by Opening New Store in Seattle
May 10, 2002 (The Seattle Times - Knight Ridder/Tribune Business News via COMTEX) -- Tiffany & Co., a jewelry and gift store that flinches not at selling a strand of pearls for $110,000, doubles its Puget Sound presence today as it opens a store in Bellevue Square.
Don't the folks at Tiffany read the headlines?
"This business is 165 years old," said Mark Aaron, vice president of investor relations for the New York-based gift chain. "We've gone through a lot of recessions, a depression, two world wars and a civil war. We never let short-term economic cycles affect our decisions to manage our company or to expand it."
Bottom line: Tiffany is optimistic about the long-term economic future of the Seattle area.
Over the years, Tiffany has been disciplined and consistent, adding three to five U.S. stores a year during good and bad economic times. Net sales declined 4 percent and net earnings dropped 9 percent in 2001, but the company, which experienced double-digit growth in both of the those areas over the past five years, is not panicking.
"The Seattle area is certainly a highly educated population with a high percentage of affluent households, and we have already learned from our experience in Seattle that there is a strong demand for quality products, which is what Tiffany offers," Aaron said.
Tiffany prides itself in selling only fine things and relies on a customer base willing to pay more -- sometimes much more -- for something special.
In Seattle, under a glass case at Tiffany's 7,800-square-foot Pacific Place store, which opened October 1998, a sterling-silver golf putter is displayed. Yours for $980. A German-made harmonica with sterling sides is yours for $210.
Tiffany's franchise merchandise is jewelry for those with plenty of disposable income. A woman's ring with 16 diamonds set in platinum with 18-karat gold crosses is priced at $5,600. A trademark Lucida 1.44-karat diamond pendant sells for $13,900.
China patterns for baby. Sterling-silver dog tags. Crystal, clocks, frames, fragrances. All ready to pack in Tiffany's signature robin's-egg-blue box. Actually, the color is Tiffany blue -- trademarked.
"Once people get used to owning something that is beautiful and designed well, they don't just suddenly not want that anymore," said Detra Segar, vice president over Tiffany's Seattle, Bellevue and Portland stores. "They may not buy as much as they did before, but they won't forgo quality."
But can people here afford that?
"In the short-term, the Seattle area is experiencing bumpy times," said Robert Spector, a local retail expert and author. "But I'm one who believes the long-term outlook for the Pacific Northwest and particularly the Seattle-Bellevue area is quite rosy. There are too many smart people, entrepreneurs and companies that are viable to keep this market down for long."
Other high-end retailers also are committed to the idea that Seattle shoppers will continue to drink from the cup of plenty in times of paucity. Spector said Barneys New York, a luxury fashion and gift chain, recently closed several of its stores during a bankruptcy reorganization. But it kept its downtown Seattle store open.
"That sends a pretty strong statement," Spector said.
With 44 stores in the U.S. and more internationally, Tiffany began adding stores in existing markets in 1995, when it opened in suburban Chicago. On the West Coast, it runs multiple stores in the San Francisco Bay Area and Southern California.
When Tiffany opened a San Francisco store at the depths of the California recession in the early 1990s, people asked if the company was reading the headlines. Aaron said he heard the same thing last June when Tiffany opened in San Jose, Calif., in the heart of the Silicon Valley during the tech bust.
"But we've had a very good first year," he said.
The company expects nothing less out of Bellevue.
By Stuart Eskenazi
To see more of The Seattle Times, or to subscribe to the newspaper, go to www.seattletimes.com.
(c) 2002, The Seattle Times. Distributed by Knight Ridder/Tribune Business News.
-0-
Tiffany & Co. will broadcast its earnings event on Tuesday, May 14, 2002 at 8:30 AM Eastern. This call can be accessed at www.vcall.com/eventpage.asp?ID=81384
Tiffany Soars Another 8%
Market Report -- Short Stories (TIF)
April 25, 2002 3:43:00 PM ET
Tiffany & Co (TIF) 39.35 +2.95: Stock soars another 8% following mgmt's move to raise Q1 guidance to $0.22 this morning (vs. consensus est of $0.17); analysts praise the co. and continue to see upside to shares despite stock's steady climb to nearly $40 from 9/11 lows of approx $20. Thomas Weisel reiterates their Buy rating and raises their price taget to $50 from $47. Firm believes transaction growth will continue given the under-penetrated brand and unique competitive position; names 2 new gross margin drivers in 2003 as (1) a resources agreement that will enable sourcing a portion of diamonds at below mkt prices and (2) fees paid to Mitsukoshi (which represented 15% of sales in 2001 will be reduced from about 27% of sales in standard boutiques to a range of 24-26% of sales.
Briefing.com is the leading Internet provider of live market analysis for U.S. Stock, U.S. Bond, and world FX market participants.
Tiffany Provides Business Update; Sees Results Strengthen in FirstQuarter
NEW YORK, Apr 25, 2002 (BUSINESS WIRE) -- Tiffany & Co. (NYSE:TIF) today provided a business update for its first quarter that ends on April 30.
Based upon improving U.S. comparable store sales trends during the quarter, the Company now expects that its net sales in the first quarter will increase 3-4 percent over the prior year's $336 million. In addition, the Company is benefiting from a higher gross margin due to favorable sales mix and from a more modest increase in operating expenses. As a result of these factors, the Company now expects net earnings of approximately 22 cents per diluted share in the first quarter, compared with 20 cents in the prior year. Security analysts' published estimates on First Call range from 15-18 cents with a consensus of 17 cents.
Michael J. Kowalski, president and chief executive officer, said, "We are delighted to see this improvement in our U.S. business, which is geographically broad-based and is primarily coming from increased numbers of transactions. However, we believe it remains prudent, based on current uncertainties and concerns regarding global external factors, to maintain the expectations for the rest of the year that we last set forth on February 28. Therefore, for the remaining quarters of 2002, net earnings per diluted share could be in the range of: 22-24 cents in the second quarter (compared with 24 cents in the prior year); 18-20 cents in the third quarter (compared with 16 cents); and 64-67 cents in the fourth quarter (compared with 55 cents)."
The Company will report its first quarter results on May 14 and will host a conference call at 8:30 a.m. (EST) to review those results. Interested parties may listen to that call on the Internet at www.shareholder.com/tiffany, www.vcall.com or www.streetevents.com.
Tiffany & Co. is the internationally renowned jeweler and specialty retailer. Sales are made primarily through company-operated TIFFANY & CO. stores and boutiques in the Americas, Asia-Pacific and Europe. Direct Marketing includes Tiffany's Business Sales division, catalog and Internet sales. Additional information can be found on Tiffany's Web site, www.tiffany.com, and on its shareholder information line (800) TIF-0110.
This press release contains certain "forward-looking" statements concerning expectations for sales, margins and earnings. Actual results might differ materially from those projected in the forward-looking statements. Information concerning factors that could cause actual results to differ materially are set forth in Tiffany's 2001 Annual Report and in 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.
CONTACT: Tiffany & Co., New York
Mark L. Aaron, 212/230-5301
URL: www.businesswire.com
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Tiffany & Co beats Q4 consensus
Market Report -- In Play (TIF, EPS)
February 28, 2002 07:48:00 AM ET
Tiffany & Co beats Q4 consensus; trims outlook for Q1 (TIF) 35.03: Reports Q4 earnings of $0.58 per share, $0.02 better than the Multex consensus. Rev fell 1.8% to $565.8 mln vs the $560.7 mln consensus. For Q1, co sees EPS of $0.16-$0.17 (consensus $0.19). Sees full yr 2002 earnings of about $1.20-$1.27 (consensus $1.25).
UPDATE 1-Tiffany quarterly profits off, outlook muted
February 28, 2002 09:06:00 AM ET
(Recasts, adds details, analyst comment)
NEW YORK, Feb 28 (Reuters) - Luxury jeweler Tiffany & Co. (TIF) on Thursday reported a 2 percent drop in fourth-quarter earnings as sluggish economic conditions and slack consumer demand hurt sales growth, and forecast first-quarter earnings around the low end of Wall Street's current estimates.
The New York-based retailer, which last month reported 2001 holiday sales from stores open at least a year off 2 percent, said net income in the quarter ended Jan. 31 was $82.7 million, or 55 cents per diluted share, vs. $84.7 million, or 56 cents per diluted share, in the prior year.
Excluding an impairment charge, earnings would have been $87.2 million, or 58 cents a share, Tiffany said.
Analysts polled by research firm Thomson Financial/First Call had expected Tiffany to report earnings between 54 cents to 56 cents a share, with a mean at 56 cents.
The company's own forecast was for profits at the upper end of its forecast of 49 cents to 56 cents, down from 60 cents to 65 cents Tiffany had estimated before the Sept. 11 attacks on the United States.
Tiffany, which also forecast a minimal rebound in global sales in the first half of 2002, said in a statement higher gross margins and expense control minimized "adverse effects on net earnings".
ABN AMRO analyst Christine Kilton-Augustine said the results were largely in line with forecasts, but reflected continued weakness in the business conditions facing Tiffany.
She said Tiffany nonetheless was able to offset sluggish growth trends by providing assortments that allowed consumers to continue buying lower price-point, higher-margin merchandise like silver.
Tiffany executives confirmed in a conference call with analysts there was "robust demand in silver jewelry".
"That product has been very popular and helps support gross margin expansion. Consumers are still going to get engaged and married and we believe Tiffany is a very high quality retailer, in a unique position of having no markdown risk," Kilton-Augustine added.
Tiffany -- known for its robin's egg blue gift boxes -- said net sales in the quarter fell 2 percent to $565.8 million from $576.4 million a year before, while sales at U.S. stores open at least a year, also known as same-store sales, fell 3 percent.
In January Tiffany had forecast an overall fourth-quarter sales drop of 3 percent. Looking ahead, the company said it also expects operating earnings to be modestly lower in the first half of 2002.
Same-store sales in Tiffany's flagship New York store fell 13 percent. the retailer said, adding the decline was fueled by a reduction in tourist-related customer traffic in the aftermath of the Sept. 11 attacks.
Tiffany projected first-quarter earnings per share seen between 16 cents and 17 cents. Analysts' forecasts for the first-quarter are for earnings between 16 cents to 20 cents, with a mean at 19 cents. In the year earlier first-quarter Tiffany recorded a profit of 19 cents.
"Forecasting retail trends is a difficult task in an uncertain environment, but our plans are premised upon an improvement in the second half 2002," Michael Kowalski, president and chief executive officer of Tiffany, said in a statement.
"We are now one month into 2002 and, in terms of early trends, we are seeing comparable store sales patterns in the U.S. and Japan similar to what we've experienced in the most recent months," he added. He said Tiffany expects to continue opening new stores in the United States, Japan and other international markets in 2002. REUTERS
© 2002 Reuters
Tiffany Announces Plans to Open Stores in Bellevue, St.
Louis and Orlando
NEW YORK, Jan 8, 2002 (BUSINESS WIRE) -- Tiffany & Co.
today announced plans to
open three additional new stores in 2002, with location
and approximate gross
square footage as follows: In Bellevue, Washington, a
5,500-square-foot store is
scheduled to open in May at 105 Bellevue Square; in St.
Louis, Missouri, a
4,800-square-foot store will open in September at the
Plaza Frontenac; and in
Orlando, Florida, a 5,700-square-foot store will open in
October at The Mall at
Millenia.
The company has already announced that it will open a
3,300-square-foot store in
East Hampton, New York as well as a 10,000-square-foot
store in Waikiki, Hawaii,
that will replace one small hotel boutique.
The three new stores will carry the company's exclusive
fine and engagement
jewelry, watches, the exclusive designs of Elsa Peretti,
Paloma Picasso and Jean
Schlumberger, as well as a selection of accessories and
china and crystal gifts.
"Opening these stores is consistent with our growth
strategy of opening 3-5
stores in the U.S. each year," said Beth O. Canavan,
executive vice president of
Tiffany & Co. "We feel that St. Louis and Orlando are
exciting cities that will
appreciate Tiffany's heritage of quality and
craftsmanship, and we look forward
to joining the dynamic Bellevue community, which will
enhance the strong
relationship established by our very successful downtown
Seattle store."
Tiffany & Co. is the internationally renowned jeweler
and specialty retailer.
Sales are made primarily through company-operated
TIFFANY & CO. stores and
boutiques in the Americas, Asia-Pacific and Europe.
Direct Marketing includes
Tiffany's Business Sales, catalog and Internet sales.
TIFFANY & CO. is a
publicly held company with its shares traded on the New
York Stock Exchange
(TIF).
UPDATE 2-Zale, Tiffany holiday sales withstand recession
1/8/02 10:21 AM
Source: Reuters
(Writes through with analyst comment, details from conference call, details from Zale Corp.; adds share price, byline)
By Ellis Mnyandu
NEW YORK, Jan 8 (Reuters) - Leading U.S. jewelers Zale and Tiffany on Tuesday reported resilient holiday sales even as consumers reined in spending on luxury goods in the recession and the aftermath of the Sept. 11 attacks.
Zale Corp., North America's largest specialty jeweler, said sales at stores open at least one year, a key indication of retail performance, rose 1.8 percent for November and December as it sorted out inventory and merchandising problems.
Tiffany & Co., which focuses on affluent consumers, said its same-store sales for the period were down 2 percent, a decline analysts said was less steep than expected as traffic picked up later in the holiday season.
The company, perhaps best known for its flagship New York store's presence in the 1961 film "Breakfast at Tiffany's," also presented a bullish outlook for the current quarter.
Both companies' shares rose on the news. Tiffany was up $2, or 6.1 percent, at $34.89 in afternoon New York Stock Exchange trade, while Zale gained $1.33, or 3.2 percent, to $42.98.
Analysts had feared that the $40 billion-plus jewelry industry would see its worst Christmas since 1991, when the U.S. economy sank into a recession in the midst of the Gulf War.
TOUGH CONDITIONS PERSIST
While those fears did not come to pass, both Zale and Tiffany said the retail environment remains difficult.
"Despite recent upward movement in consumer confidence, we think it's too early to call it a trend," Tiffany Chief Financial Officer James Fernandez said in a conference call.
The company said it sees no "meaningful improvement" in earnings until the second half of the year ending in January 2003.
Tiffany said it expects earnings for the fourth quarter ending on Jan. 31 to hit the upper end of its forecast of 49 cents to 56 cents a share, although sales should come in about 3 percent lower than a year earlier.
President and Chief Executive Michael Kowalski said higher gross margin resulting from a more profitable product sales mix, as well as ongoing expense controls, will offset sluggish sales.
The earnings forecast, however, is down from the 60 cents to 65 cents a share projected before the Sept. 11 attacks on New York and Washington. Analysts polled by research firm Thomson Financial/First Call have on average been expecting a profit of 50 cents a share.
Tiffany, known for its robin's egg blue gift boxes, said it expects full-year earnings at the higher end of its initial forecast of $1.09 to $1.16 a share, with a mid to high single-digit percentage increase for fiscal 2003.
First Call's 2003 consensus forecast is $1.18 a share, up about 8 percent from $1.09 estimated for the current year.
As consumers shy away from merchandise that costs anywhere from $10,000 to more than $25,000, Tiffany has begun offering customers lower priced items that help draw store traffic and also carry higher margins.
WR Hambrecht & Co. analyst Kristine Koerber said the merchandise shift is a good step.
SALES DROP AT TIFFANY FLAGSHIP STORE
"Given that Tiffany competes in the luxury goods arena and there's so much concern over a very difficult holiday season, I think they managed through quite well," she said. "Inventories are in good shape ... and this supports the strength of the Tiffany brand."
Tiffany said net sales for November and December fell 2 percent to $472.7 million from a year earlier.
The company's flagship store in midtown Manhattan was hit particularly hard, with sales dropping 12 percent due to reduced traffic following the Sept. 11 attacks and job losses in the financial services industry, including Wall Street.
That store is a key component of Tiffany's business as the New York region accounts for about 13 percent of the company's total sales. U.S. same-store sales were down 3 percent.
Zale, which targets a wider range of consumers than Tiffany does, said its total holiday sales rose 3.6 percent to $763.4 million.
The Dallas company, which operates more than 2,300 stores under its own name as well as Gordon's, Piercing Pagoda and Bailey Banks & Biddle, said it was able to increase market share without sacrificing operating margins.
"Our holiday sales are an indication of the progress that has been made in the company's repositioning," Chairman and Chief Executive Robert J. DiNicola said in a statement.
Zale has spent much of the past year refocusing on wedding and engagement rings and on improving the quality of its merchandise.
Copyright 2002, Reuters News Service
Quote Snapshot
TIF 34.84 1.95
ZLC 43.06 1.41
Hot Stocks Highlights
1/8/02 11:09 AM
Source: Reuters
Excerpt:
TIFFANY & CO. GAINED $2.17, OR 6.6 PERCENT, TO $35.06.
ZALE CORP. ROSE $1.30, OR 3.12 PERCENT, TO $42.95.
**Leading U.S. jewelers Zale and Tiffany on Tuesday reported resilient holiday sales even as consumers reined in spending on luxury goods in the recession and the aftermath of the Sept. 11 attacks.
For a full story [nN08213925].
Tiffany U.S. Comparable Store Sales Rise in December; Overall Sales
Decline 2 Percent in Holiday Season
NEW YORK, Jan 8, 2002 (BUSINESS WIRE) -- Tiffany & Co. (NYSE-TIF) reported that
net sales in its holiday season from November 1 - December 31, 2001 were
$472,708,000, or 2 percent lower than the same period a year ago.
On a constant-exchange-rate basis which excludes the effect of translating
local-currency-denominated sales into U.S. dollars, net sales increased 1
percent and worldwide comparable store sales declined 2%. Results reported today
are based on unaudited sales.
Michael J. Kowalski, president and chief executive officer, said, "Considering
the challenging external environment, we are pleased with these holiday season
results which, in total, exceeded our expectations going into the season. While
customers continued to exhibit varying degrees of restraint in their holiday
spending, there was a noticeable improvement in store traffic as the holiday
season progressed."
-- U.S. Retail sales of $248,583,000 in the holiday season were
fractionally below the prior year. Comparable U.S. store sales
declined 3 percent: comparable branch store sales were
approximately equal to the prior year, while sales declined 12
percent in the flagship New York store due to reduced store
traffic. However, comparable U.S. store sales improved markedly as
the holiday season progressed, with a low-single-digit percentage
increase in December following a mid-teens percentage decline in
November.
-- International Retail sales were $172,969,000, or 4 percent below
the prior year. On a constant-exchange-rate basis, International
Retail sales increased 5 percent. Comparable store sales on a
constant-exchange-rate basis declined in major markets as follows:
1 percent in Japan (total sales in local currency rose 5 percent);
3 percent in other Asia-Pacific markets; and 4 percent in Europe.
-- Direct Marketing sales of $51,156,000 were 2 percent lower than a
year ago. Combined Internet/catalog sales rose 25 percent while
the Business Sales division declined 28 percent.
Mr. Kowalski added, "Holiday season sales represent the largest portion of our
fourth quarter, although investors should not overlook the importance of
January. At this time, we expect that net sales in the fourth quarter ending
January 31st will finish approximately 3 percent lower than the prior year. We
expect to benefit from a higher gross margin resulting from changes in product
sales mix, as well as ongoing expense control. Therefore, we anticipate that net
earnings will be at the upper end of the previously-announced (on November 14th)
expected ranges of 49 - 56 cents per diluted share for the fourth quarter
(versus 56 cents last year) and $1.09 - $1.16 per diluted share for the full
year (versus a 31 percent increase to $1.26 last year). We are still in the
process of constructing and evaluating our plans for 2002, but we expect a
mid-to-high single-digit percentage increase in net earnings for the year. We
are encouraged by rising U.S. consumer confidence, and expect improving sales
trends in the second half of 2002 as the external environment improves. We plan
to report fourth quarter and full year results on Thursday February 28th."
The Company will host a conference call today at 8:30 a.m. (EST) to review these
results and the Company's outlook. Interested parties may listen to a broadcast
on the Internet at www.shareholder.com/tiffany or www.vcall.com.
Tiffany & Co. is the internationally renowned jeweler and specialty retailer.
Sales are made primarily through company-operated TIFFANY & CO. stores and
boutiques in the Americas, Asia-Pacific and Europe. Direct Marketing includes
Tiffany's Business Sales division, catalog and Internet sales. Additional
information can be found on Tiffany's Web site, www.tiffany.com, and on its
shareholder information line (800) TIF-0110.
At Tiffany's, the high-end jewelry store, "we have never
seen so many people. We kept the Center City store open
until 8 p.m., which we had not done in previous holiday
seasons," said Sandra Alton, vice president for the
Philadelphia market.
Alton said an "extraordinary" number of people paid in
cash. "Many people . . . are fearful of the economy and
of losing jobs," she said, and were "being more
cautious" with credit cards.
Excerpt from: Bargain-Hunters Boost Retailers' Holiday
Sales in Philadelphia Area
Note the bargain-hunting was not at Tiffany's because as
everyone knows they never have sales.
Tiffany Announces Plans to Open Store in East Hampton
NEW YORK, Dec 11, 2001 (BUSINESS WIRE) -- Tiffany & Co. today announced plans to open a store at 53 Main Street in East Hampton, New York in mid-2002. The store will occupy approximately 3,000 gross square feet and will primarily carry
the company's exclusive fine and engagement jewelry, watches, the exclusive designs of Elsa Peretti, Paloma Picasso and Jean Schlumberger, as well as a selection of accessories and china and crystal gifts.
"Tiffany's ongoing growth strategy includes opening three to five stores each year in the United States," said Beth O. Canavan, executive vice president. "We are excited that our new store in East Hampton (the fourth store in New York) will strongly appeal to our current and prospective customers who live or vacation in the Hamptons."
Tiffany & Co. is the internationally renowned jeweler and specialty retailer.
Sales are made primarily through company-operated TIFFANY & CO. stores and boutiques in the Americas, Asia-Pacific and Europe. Direct Marketing includes Tiffany's Business Sales, catalog and Internet sales.
TIFFANY & CO. is a publicly held company with its shares traded on the New York Stock Exchange (TIF). Additional information can be found on the company's Web site atwww.tiffany.com and its shareholder information line (800) TIF-0110.
CONTACT: Tiffany & Co., New York
Mark L. Aaron, 212/230-5301
Linda Buckley, 212/230-6577
Tiffany & Co. Celebrates Completion of Floor Renovation
in New YorkFlagship Store; Redesigned Second Floor is
New Home for Diamonds and ImportantJewels
NEW YORK, Nov 5, 2001 (BUSINESS WIRE) -- Tiffany & Co.,
America's premier jeweler, celebrated the renovation of
the flagship store's second floor -- the new home for
Tiffany's magnificent diamonds and important jewels.
The renovation, executed by Tiffany's in-house
architects and designers in conjunction with the Toronto
design firm Yabu Pushelberg, complements the key
architectural themes of the main floor. Like Tiffany's
famed first floor, the newly designed second floor
presents an open environment that allows for individual
customer attention and augments the dazzling diversity
and originality of Tiffany jewels, including the
company's illustrious array of diamond engagement and
wedding rings, as well as diamond jewelry of ultimate
glamour; exquisite colored gemstones and luminous pearls
from the South Seas.
Visitors enter the second floor from elevators that open
onto a grand portal of Brazilian granite that echoes the
main floor's Alpine marble. The granite is repeated in a
series of streamlined portals with columns of Sapele
(African hardwood) similar to the first floor's burled
teakwood and cherry. Adding to the spaciousness is a
coffered ceiling patterned after the first floor
ceiling, and a floating grid of beveled mirrors with an
antique finish.
The display cases, also in Sapele with metal trim that
reflects the building's stainless steel entrance, are
lined with douppioni silk in a pale neutral. The
furniture, including desks and pedestals with inlaid
shagreen, tables and credenzas, planter boxes and vases
are crafted in rare, exotic woods. Luxurious fabrics
cover sofas, chairs and benches; and singular details
such as hand-painted porcelain vases and platinum leaf
framing jewelry platforms and shimmering on panels,
mirrors and custom made lamps provide the finishing
touches.
A suite of two private selling salons is accessible
through 14-foot metal doors, with mesh detail and hand-
rubbed pewter finish, that open to a separate seating
area with platinum leaf ceiling and walls upholstered in
gray-green leather panels. The private salons overlook
Fifth Avenue and feature a wall treatment of waxed
Venetian plaster over cream beige paint that reflects
the texture of the floor's Sapele columns.
Built into each of the Sapele columns is a vitrine
featuring a design from the Tiffany & Co. Archives.
Included are the American Flag brooch created for the
nation's centennial in 1876 and modeled after the
original 1776 American flag, with 13 diamond and ruby
stripes and 13 diamond stars surrounded by sapphires;
several lifelike orchid brooches, with gem-set gold and
enamel, which received the grand prize gold medal for
jewelry at the 1889 Paris World's Fair; and the
spectacular Trophee clip, an amethyst and ruby shield
with a warrior's chain mail set in diamonds designed by
Jean Schlumberger in 1941 for legendary Vogue editor
Diana Vreeland.
"Tiffany enjoys a unique position in American retailing
that is embodied in our flagship store," said Michael J.
Kowalski, president and chief executive officer of
Tiffany & Co. "In renovating the second floor, our goal
is to preserve architectural history while at the same
time create a spacious, welcoming environment that are
the hallmarks of the Tiffany shopping experience."
The second floor renovation completes the initial phase
of a storewide renovation, which will continue over the
next two years with no disruption of sales or customer
service. Plans are to arrange the store's remaining
floors as follows: the main floor will undergo no
structural changes beyond a third customer elevator
already in operation, and will continue to offer fine
jewelry collections, the creations of Tiffany's
exclusive designers, and an expanded watch assortment;
the Jean Schlumberger Salon will remain on the
mezzanine; the third floor will display sterling silver
jewelry, hollowware and gifts, and will be connected to
the fourth floor with an open staircase; the fourth
floor will be converted from administrative to retail
space featuring designs for the home, increasing the
store's total selling area by 25%; the fifth floor will
be reserved for entertaining and exhibitions from the
Tiffany & Co. Archives. Customer service will be
relocated to the sixth floor, with a dedicated elevator
for convenient access.
Tiffany began exploring options to improve the shopping
experience for its customers in 1999 when it purchased
the building. To provide expansion space, Tiffany's
executive offices, along with other operations, have
been relocated to 600 Madison Avenue where Tiffany now
occupies ten floors for merchandising, marketing, and
administrative purposes.
Designed by Cross & Cross and completed in 1940, the
Tiffany building, with its classic Art Deco detailing,
was immediately embraced as the ideal new home for the
treasures of Tiffany. Luxury of space and customer
convenience dominated the building's structural plan,
which led to a number of architectural innovations: the
124,000-square-foot building was the first to have a
central air conditioning system as an integral part of
its design; and the 8,400-square-foot main floor is free
of obstructing columns due to three 106-ton trusses
placed between the first and mezzanine floors.
With the newest renovations, Tiffany is committed to
retaining the company's illustrious heritage for a new
century at the forefront of taste, style and design
excellence.
CONTACT: Tiffany & Co.
Linda Buckley, 212/230-6577
Copyright (C) 2001 Business Wire. All rights reserved
The Power of Tiffany's Blue Box
Tiffany is case-in-point of how a superior brand can help a company weather all sorts of economic environments. Tiffany's trademark blue box evokes strong, positive emotions among consumers. This is neither by accident nor chance.
By Bill Mann (TMF Otter)
April 11, 2001
Let's start with a quick image association. What company's hallmark is a robin's-egg-blue box?
Did Audrey Hepburn just flash through your mind?
What are some of the words you associate with the blue box? How about luxury, exclusivity, expensive, and desire?
These are some common words affiliated with the company in question: Tiffany & Co. (NYSE: TIF), one of the oldest jewelers in the United States. Tiffany now operates more than 100 locations in 16 countries, and though it is not the largest purveyor of luxury goods, its brand name is second to none.
That's good news for Tiffany today. Discretionary luxury items such as china, jewelry, watches, and pens are dependent upon the economic climate. A company lacking a strong brand may thrive during the high times, but when the sea goes back out, those no-clothes-wearing poseurs often wither up and blow away.
And in the luxury goods market, about the biggest differentiator is brand. Consumers demand the brand names because they stand for exclusivity and quality.
Although Tiffany is not immune from the swings in the economy, I suggest that its gilt-edged brand provides it with a buffer against even stronger fluctuations in its business. Just as importantly, the premium that the Tiffany brand allows the company to charge should make it attractive as a business. I say "should" because the world is littered with companies with incredible product advantages that also happen to be run horribly.
Still, just as there is a difference between a watch labeled "Made in Switzerland" and one labeled "Made in Thailand," the Tiffany brand allows it to add superior status to something that is, at its core, a commodity.
Tiffany has, naturally, felt the pinch of the tightening economic belt along with most other purveyors of high-end discretionary luxury items. Yet Tiffany has been in business for more than 160 years and has survived through every sort of economic swing imaginable. In fact, it has thrived. Its success as a brand can be traced to its fanatical protection of its image. Its success as a company centers upon its careful management of other, less obvious components of its business as well.
I started looking at Tiffany as an investment several years ago. I was accompanying a friend who was buying an engagement ring, and he had one hard and firm rule: The ring had to be from Tiffany. For all he seemed to care, it could have been a child's spy decoder ring, just so it came out of that robin's-egg-blue box. As an investor constantly looking for differentiated companies, this struck home with me. So did the fact that the Tiffany store in Manhattan that day was mobbed with couples doing just the same thing. Sure, the Tiffany flagship store on Fifth Avenue is a magnet for tourists and window shoppers, but there was a lot of buying going on as well.
Here's what else I noticed: Tiffany's products were expensive. Certainly some of this had to do with superior craftsmanship, quality control, and service. But just as certain was the fact that Tiffany, the name brand, had a premium attached to it. Tiffany the company was not at all opposed to charging for it, and customers seemed all too willing to pay it. If you've ever witnessed someone receiving a Tiffany gift -- or even better, been the recipient yourself -- you know the palpable excitement that comes at the mere sight of the blue box. It exudes luxury, it bleeds importance. It just seems, somehow, more special.
Brand awareness like this does not come by accident or by default. It comes only after enormous investment by the company that owns it, both in the brand itself and in the characteristics that underpin the brand. In Tiffany's case, much like Swiss watchmakers or German auto manufacturers, the core characteristic is impeccable quality.
Mark Aaron, a spokesperson for Tiffany, explained that their market research has shown over and over again that customers and non-customers alike equate the Tiffany brand with "trust." It's the same way that Volvo is synonymous with "safety" in automobiles. If you, as a consumer, want to be absolutely sure the jewelry you buy is of absolute top quality, you go to Tiffany. So complete is Tiffany's brand image that Aaron practically bristled when I listed some large-chain jewelers as its competition. Tiffany considers its true competition to be family-owned relationship-based local jewelers, as these are the types of outfits that can engender the same feeling of trust from customers.
The ultimate benefit of the Tiffany brand is in its ability to achieve higher gross margins on its products than companies that lack the same prestige. If the company is capable of translating this into superior net margins and cash flow, well, you've got yourself a company worth looking into as an investment. I found this to be the case with Tiffany.
For the fiscal year 2001, Tiffany's gross margins were 57%, or $948 million on sales of $1.66 billion. Tiffany's net margins for the year were 11.5%, meaning that for every dollar of top-line sales, the company earned more than $0.11. That's good stuff. As importantly, though, is the fact that the total profits have more than doubled since 1999. Given that the last quarter of fiscal 2001 was fairly anemic, this is an excellent result.
Still, where a great brand transcends into a great company is not in sales, but on the balance sheet and cash flow statement. For Tiffany, both are generally sparkling. The company has a debt-to-equity ratio of .26, which means that the company has very little leverage. The only balance sheet knock is that Tiffany's business requires that it hold a large amount of inventory, more than 4.7 months' worth of sales.
Tiffany's inventory, however, is decidedly low-risk. Diamonds don't spoil, nor is there much seasonality or fashion risk involved. To a certain degree, a large inventory is a cost of doing business in this sector, and the Foolish investor would be better served to focus upon inventory turns. In Tiffany's case, it turns over its inventory almost exactly once per year, a slight improvement over years past.
The cash flow statement holds some additional concern. Rapidly deteriorating economic conditions left Tiffany with $182 million more in inventory at the end of fiscal 2001 than fiscal 2000. Had that figure better reflected its five-year average for inventory expenditure, an account on the cash flow statement, the company would have created free cash flow in the range of $1.20 per share for the year. At current prices, this would put Tiffany at a price-to-free-cash-flow ratio of about 23, which does not put it in the camp of "cheap."
But Tiffany also has something most every company lacks: an enormous moat around its business. The likelihood of another company knocking Tiffany off of its pedestal is slight, and in fact Tiffany has held its position of pre-eminence so long in the luxury goods market that the most likely culprit in a degradation of Tiffany's brand advantage is Tiffany itself. Given the company's near-paranoid protection of its brand, I don't consider this to be a high-percentage bet.
Fool on!
Bill Mann, TMFOtter on the Fool discussion boards
Tiffany's Economic Standing Will Improve With Rebounding Economy
Openwave, Tiffany: Tale of Two Warnings
In a span of a few minutes, Openwave Systems and Tiffany offered dire warnings regarding upcoming quarterly results. Openwave got the worst of it, as the mobile communications company went from being profitable to projecting a loss. Tiffany's earnings this quarter will be half last year's. The difference between the two is a matter of implied risk, which helps explain their share price movements today.
By Bill Mann (TMF Otter)
October 3, 2001
As an owner of both Tiffany (NYSE: TIF) and Openwave Systems (Nasdaq: OPWV), I was more than slightly miffed to hear that they both reduced earnings guidance for the quarter today. It's fortunate that I am not dependent upon my holdings in either company for income anytime soon, but the double whammy of seeing two of my favorite companies taking bullets within a few minutes of each other was, shall we say, displeasing.
Openwave, a leading mobile data and Internet company, said results for its just-ended quarter would come in shy of previous revenue and earnings estimates. Analysts had expected a quarterly profit of $0.09 per share; Openwave will lose between one and four cents per stub. The major culprit was (of course) the terrorist attacks of Sept. 11, which came late in Openwave's quarter -- when an oversized amount of its revenues are traditionally realized.
Tiffany similarly blamed the terrorist attacks and the general poor economic environment for its downward revision in sales estimates. The company's flagship Fifth Avenue store in New York has seen foot traffic drop by upwards of 30% in the wake of the attacks. Sales dropped 38%. That store accounted for 12% of the company's sales last year, so a big drop there can really hurt results. As a result of the double whammy, Tiffany expects quarterly earnings to be as little as half last year's, and its fourth quarter to be flat.
Both scenarios make sense, but what does not is the price action of the two companies today. In the aftermath of the warnings, Openwave stock dropped by some 35%. Tiffany, meanwhile, gained more than 10%. What could possibly cause the divergence of these two companies when their message was similar? Are things just better, relatively, for Tiffany than Openwave?
Sort of. Openwave has just gone from being profitable to pre-announcing a loss for the quarter. Even for the leading company in its unproven market, given an environment in which investors are getting tired of having "risk" come to mean "egregious losses" this adds a greater level of uncertainty to the company's appropriateness as an investment. That's the theory, at least. Some analysts are now saying Openwave's inability to close certain big deals this past quarter points to heightened risks for future profitability.
To some extent this is correct: Openwave is dependent upon a few big deals for the majority of its growth. What remains to be seen is whether the fact that the company did not close deals amid the greatest domestic turmoil in modern history is indicative of the strength of its potential customer base. This line of thought seems extreme, but the uncertainty rightly contributed to the company's massive loss of share price today.
Tiffany, on the other hand, has no customer comprising anywhere close to 1% of its total revenues. There is simply no question that Tiffany's economic standing will improve along with a rebounding economy. Further, the third quarter has traditionally been the one with the lowest impact on Tiffany's top- and bottom lines. This is a company that generates nearly half of its income from the holiday season, so it can still count on a reasonable, if unspectacular, Q4 to tide itself over.
Moreover, as a New York-centric company that sees a meaningful percentage of its foot traffic generated by tourists, Tiffany's performance impact was already a poorly kept secret, and its share price had already been ripped as a result.(Federated Department Stores (NYSE: FD), which owns two landmark Manhattan department stores, was similarly impacted.)
Simply put, the difference between the two warnings is that Openwave's has the feel of a potentially permanent impairment, while Tiffany's is more like a sign o' the times. Both companies maintain solid leads in their respective markets, so the big question is whether each market will come back at all. Mobile data is a big fat "maybe" -- though as an owner, I lean toward "yes" -- while diamonds will be back beyond a shadow of a doubt.
Bill Mann, who owns Tiffany and Openwave, is not at his desk at the moment, but he will be back beyond a shadow of a doubt. The Motley Fool is investors writing for investors.
WR Hambrecht + Co Initiates Coverage of Tiffany & Co.
(TIF) With a Buy Rating and $30 Target
10/5/01 4:31 AM
Source: PR Newswire
SAN FRANCISCO, Oct. 5 /PRNewswire/ -- WR Hambrecht + Co
today initiated research coverage on Tiffany & Co (NYSE:
TIF) with a Buy rating and $30 target. WR Hambrecht's
Specialty Retail analyst Kristine Koerber cites the
company's brand franchise, growth prospects, management
team and multi-channel distribution strategy as key
reasons for the rating. WR Hambrecht + Co offers all its
research reports free and real time at
www.wrhambrecht.com.
"We believe that investors should look at the company's
long-term fundamentals of reliable growth coupled with
its strong balance sheet with a modest debt level and
healthy cash flow generation," Koerber said.
She added, "While visibility is fogged for the upcoming
holiday season, we believe that the fundamental reasons
for investing in the Tiffany franchise remains unchanged
and the company's earnings power will recover to
normalized levels and above following this period of
uncertainty."
WR Hambrecht + Co estimates Tiffany's to post EPS of
$1.09 on revenues of $1.61 billion in fiscal 2001 and
$1.18 on $1.68 billion in fiscal 2002. Tiffany's
reported an EPS of $1.26 on $1.67 billion in fiscal
2000.
Tiffany & Co. designs, manufactures, distributes and
retails fine jewelry, timepieces, sterling silver goods,
china, crystal, stationery, writing instruments,
fragrances and personal accessories.
About WR Hambrecht + Co
WR Hambrecht + Co (www.wrhambrecht.com) is a financial
services firm committed to using the Internet and
auction process to provide openness, fairness and access
for investors, as well as fair pricing for issuers. The
firm's earliest and best-known innovations are OpenIPO,
an auction-based model for initial public offerings, and
OpenBook, an auction for corporate debt offerings. WR
Hambrecht + Co provides underwriting and advisory
services for technology and emerging growth companies,
as well as equity research, sales and trading,
electronic brokerage and private equity offerings for
institutions and individuals. WR Hambrecht + Co has
offices in San Francisco, New York, Boston, Philadelphia
and Seattle and is backed by industry leaders including:
American Century, American Express, Crimson Ventures,
epartners, Fidelity Ventures, Instinet Corporation,
Novell, Park Avenue Equity Partners, LP, Scudder
Technology Fund, Kemper Technology Fund and Texas
Pacific Group.
WR Hambrecht + Co. is a member of the National
Association of Securities Dealers, CRD number 45040.
TIFFANY & CO, filed this 8-K on 10/03/2001.
Outline View Header First Page »
<PAGE> 1
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
-----------------------
FORM 8-K
CURRENT REPORT
-----------------------
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of
1934
Date of Report (Date of earliest event
reported): October 3, 2001
TIFFANY & CO.
(Exact name of Registrant as specified in
its charter)
Delaware 1-
9494 13-3228013
(State or other jurisdiction (Commission File
Number) (I.R.S. Employer
of incorporation)
Identification Number)
727 Fifth Avenue, New York, New
York 10022
(Address of principal executive
offices) (Zip Code)
Registrant's telephone number, including area code:
(212) 755-8000
<PAGE> 2
Item 5. Other Events.
On October 3, 2001, Registrant issued the following
press release providing
updated earnings guidance for the remainder of
the year and information
concerning its stock repurchase program.
NEW YORK, October 3, 2001 - Tiffany & Co. (NYSE-
TIF) announced that it is
experiencing lower-than-expected sales in its third
quarter ending October 31.
Restrained customer spending due to a continuation
of weak and uncertain
economic conditions has been intensified by a
decline in store traffic since
September 11. Therefore, the company is revising its
previous earnings guidance
for the remainder of the year.
Net sales are expected to decline approximately 10
percent in the third quarter,
primarily due to lower sales in Tiffany's U.S. Retail
channel of distribution.
Comparable U.S. store sales declined 19 percent in the
August-September period,
which includes a 36 percent decline since
September 11. In that two-month
period, U.S. sales declined 30 percent in Tiffany's
New York flagship store
(which accounted for 12% of total company sales in
2000) and 15 percent in
comparable branch stores. In addition to declines
in average transaction
amounts, store traffic declined in U.S. stores among
local residents as well as
foreign visitors. International Retail sales in the
two-month period were also
below expectations but to a lesser extent. In local
currencies, comparable store
sales in Japan increased in the mid single
digits, while sales in other
Asia-Pacific markets remained weak and sales declined
in Europe. In Tiffany's
Direct Marketing channel, spending by businesses was
lower while Internet sales
were substantially higher.
Michael J. Kowalski, president and chief executive
officer, said, "In making
this announcement, we are attempting to reduce
investors' speculation about how
our business may perform in the coming months. Weak
economic conditions in the
U.S. have affected our business since last year's fourth
quarter and comparisons
to the prior year were made more difficult by robust
conditions in the first
three quarters of 2000."
<PAGE> 3
Mr. Kowalski added, "While comparable U.S. store sales
declined 36 percent since
September 11, they declined 19 percent in the final
week of September with
improving store traffic in many regions. We assume
that the sales environment
will continue to be challenging in the remainder of the
third quarter. Because
we will face an easier year-over-year comparison in
the U.S., we expect to see
net sales almost equal to the prior year with a low-
double-digit comparable U.S.
store sales decline in the fourth quarter. We also
expect to benefit from higher
gross margins tied to anticipated shifts in sales mix as
well as prudent expense
control. On that basis, we now expect earnings in the
range of 12-15 cents per
diluted share in the third quarter (versus 24 cents in
2000) and 49-56 cents per
diluted share in the fourth quarter (versus 56 cents
in 2000). This would put
2001 earnings in a range of $1.05-$1.15 per diluted
share (versus $1.26 in
2000). In addition, our very preliminary expectation
calls for modest earnings
growth for full year 2002."
He concluded, "Tiffany's strategies have proven to be
very successful over the
long term and we fully intend to maintain our
initiatives in store expansion,
merchandising and marketing. Supported by a strong
balance sheet, we are
determined to continue providing a superior
shopping experience for our
customers while further building long-term value for our
shareholders."
Under its authorized program, in the quarter-to-date the
Company has repurchased
and retired 1,250,000 shares of its Common Stock at
an average cost of $22.39
per share. Approximately $61 million remains available
for future repurchases in
the program that expires in 2003.
The Company plans to report its third quarter earnings
on November 14 and will
conduct a conference call that day at 8:30 a.m. (EST).
Tiffany & Co. is the internationally renowned jeweler
and specialty retailer.
Sales are made primarily through company-operated
TIFFANY & CO. stores and
boutiques in the Americas, Asia-Pacific and Europe.
Direct Marketing includes
Tiffany's corporate division, catalog and Internet
sales. Additional information
can be found on Tiffany's Web site, www.tiffany.com,
and on its shareholder
information line (800) TIF-0110.
This press release contains certain "forward-
looking" statements concerning
expectations for sales, margins and earnings.
Actual results might differ
materially from those projected in the forward-looking
statements. Information
concerning factors that could cause actual results to
differ materially are set
forth in Tiffany's 2000 Annual Report and in 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.
# # #
<PAGE> 4
SIGNATURE
Pursuant to the requirements of the Securities
Exchange Act of 1934, the
Registrant has duly caused this report to be
signed on its behalf by the
undersigned thereunto duly authorized.
TIFFANY & CO.
BY: /s/ Patrick
B. Dorsey
____________________________________
Patrick B.
Dorsey
Senior Vice
President, Secretary and
General
Counsel
Briefing.com Story Stocks: Tiffany & Co. (TIF)
10/3/01 8:05 AM
Source: Briefing.com
22.45 +1.69: We've seen it before. A company warns of an earnings shortfall, and its stock goes up. Granted, that hasn't always been the case this earnings warning season, but in light of the aggressive discounting in stock prices that took place following the terrorist attacks, it's not the aberration it normally is during an earnings warning period. Tiffany & Co., the internationally renowned jeweler and specialty retailer, is the latest beneficiary of the market's counter-intuitive response as it is trading up nicely today on the heels of-- what else-- an earnings warning. Citing restrained customer spending, which intensified following the tragic events of Sept. 11, TIF said it expects net sales to decline approximately 10% in Q3. Much of the blame for the shortfall was placed on lower sales in the company's U.S. retail channel of distribution as international sales, while below expectations, were down to a lesser extent. Hoping to provide some color for investors, TIF indicated comparable U.S. store sales dropped 19% in the August-September period and included a 36% decline since Sept. 11. The rate of decline has since abated as comparable store sales were down 19% in the final week of September, but clearly, TIF's customer base isn't as freespending as it once was. Subsequently, TIF has lowered its earnings expectations to $0.12-$0.15 per share for Q3 (Multex consensus is $0.20), to $0.49-$0.56 for Q4 (consensus is $0.56) and to $1.05-$1.15 for FY01 (consensus is $1.19). Looking further out, TIF expects "modest earnings growth" for FY02. The latter is somewhat disappointing, but it hasn't been too much of a stumbling point as the market is beginning to recognize that it behooves the retailers to err on the side of caution at this point. Long-term investors in TIF should take note of that epiphany as Briefing.com believes the stimulative impact of monetary and fiscal policies will open the door for positive surprises in 2002. The bigger question, of course, is when in 2002? The consensus opinion seems to be mid-2002 (which means it probably won't be mid-2002). In any case, the uncertainty regarding the answer to that question should act as a restraining influence on TIF over the near-term, but given its discounted valuations, the strength of its brand, and easier comparisons, TIF represents a compelling investment option for those with a long-term mindset.-- Patrick J. O'Hare, Briefing.com
Tiffanys is Hands-Down Favorite
"When asked what brought them out in the middle of a tropical storm, the two responded quickly and in unison: Tiffany's."
Area Shoppers Weather Sorrow
September 17, 2001 2:56pm
Sep. 15--TAMPA, Fla.--Call it comfort consumerism.
Though Tampa's International Plaza held its grand opening on a solemn, sodden day, shoppers still came. They wandered, wide-eyed, among Swarovski crystal and Charles Jourdan shoes, through Neiman Marcus and around Lord & Taylor.
Though the mall was not particularly crowded -- and visitors appeared to browse more than to buy -- many sought relief from the week's tragic events in the normalcy of shopping, the novelty of new shops.
I know it is a day of mourning, said Kathleen Purdy, who had daughter Sterling, 2, and son Peyton, 11 months, in tow. "But we must go on, through tragedies or tropical storms.
And we desperately need something to do, something to comfort us. Why, I've already seen friends here. It's nice to touch base and tell our own stories. Oh, and of course, Americans love to shop.
During a brief opening ceremony, Tampa Mayor Dick Greco agreed. This is so typically American, what we're doing here today, he said.
Throughout the complex, grins seemed to come easy. Children giggled as they crawled over plastic dolphins and turtles in the mall's play area. A person dressed as a Haagen-Dazs ice cream cone waved to shoppers walking past the food court.
Employees of Wolford, a boutique featuring Austrian- made hosiery and body wear, couldn't help but laugh as men walked slowly past their windows then turned around to make the pass again. The display featured a female mannequin, her backside to passers- by, wearing a pair of lace pantyhose -- and little else.
People are really loving our window, store manager Denise Kelly said. They keep pointing to the mannequins and saying to their wives or girlfriends, `Honey, why don't you wear something like that?' It's hilarious.
Tristan and Joshua Schoffer of Tampa shared a giggle, too. With sons Grayson and Garrett in a double stroller, Tristan Schoffer said, I can barely escape a mall without buying something. I suppose shopping is very American -- just like football!
Mall management said it was unable to give an estimate on the number of first-day visitors primarily because of inclement weather. Normally, management would have positioned a spotter on the roof and would have calculated shoppers by a formula incorporating the number of cars in the parking lots.
Managers said about 130 stores and restaurants were up and running. Space for about 30 more has been leased, and the mall can accommodate 40 beyond that.
The open stores included the hands-down favorite of University of South Florida students Samantha Streppone and Kathryn Cleveland.
When asked what brought them out in the middle of a tropical storm, the two responded quickly and in unison: Tiffany's.
Judy Lynne and her 11-year-old daughter, Christin, weren't nearly so choosy. By late morning, each was carrying an armful of shopping bags.
Hurricane watch or not, we were going to be here at 10 a.m., Judy Lynne said. After waiting outside in the rain, the two were greeted with applause when they walked into Neiman Marcus after the doors opened.
The mall is huge, very expansive, Judy Lynne said. It's going to take awhile to learn my way around.
It won't take that long, Mom, Christin joked.
Meanwhile, 25-year-old Franchief Jemison, daughter of mall general manager Aj Jemison, had solved a dilemma. Forced to choose from her 337 pairs of shoes for opening day, she picked sneakers.
Oh, yes, I love to shop. But I often spend money on Mom because she'll ask me to buy things for her, Franchief Jemison said.
Employees Share In Excitement Employees, too, appeared excited by the opening, even if their enthusiasm was buoyed by a bullhorn. That's what Nordstrom manager Joe Greco used to rally troops just before the doors opened, working hundreds of employees into a cheering frenzy.
More than an hour later, Geir Ness was still all smiles as he greeted men and women near the Nordstrom entrance. The Norwegian perfumer, whose Laila scent is carried exclusively by the retailer, was equally enthusiastic about shopping-as-solace.
It's not time to celebrate, but what the terrorists want is for Americans all over the world to be scared, he said. Americans need to show that this is not what they are about, not in such a free and wonderful country.
-- Reporters Carole Tarrant, Gary Haber and Frank Witsil contributed to this report.
Tiffany's Website is a Quiet Haven of Tranquility.
Computimes: Brands on the run - Glitz and glamour don't
always translate well onto the Web. Quentin Fotrell
looks at luxury goods websites, some of which are
thriving, others which have lost their sheen
September 10, 2001 1:22pm
Source: The Irish Times, September 10, 2001, Page 8
There's nothing more valuable to a luxury goods company
than brand value. Image and feel are everything.
Quality, of course, comes into the equation, too. But
whether we are buying a set of wine glasses from
Waterford Crystal or a diamond ring from Tiffany & Co,
it's the thrill of exclusivity that gives us the
familiar 'buzz' or adrenaline rush.
So how do luxury goods companies maintain their presence
on the Internet, without losing their priceless,
incalculable brand value? After all, the Web's very lack
of exclusivity has revolutionised the way the world does
business. Unfortunately, its brash colours and crassly
produced homepages don't sit well next to Prada.
For all the Web's low-brow, jingle-bell, down-and-dirty
gimmickry, even the world's most upmarket companies
cannot afford to ignore it. This presents something of a
dilemma for businesses that trade off their exclusive
status.
From an e-commerce perspective, the Internet is a victim
of its own success. It's fiercely democratic, reaching
out to the masses. But if the masses get the same
hankering for Tiffany's glittering line-up as, say, a
New York dowager whose family arrived on the Mayflower,
she may be more inclined to take her business elsewhere.
One Tiffany executive recently summed up the challenge
perfectly by saying most websites were like 'the front
page of a supermarket tabloid - 50 things going on at
once with bells ringing'. It's safe to say Tiffany.com
will not rate its '10 sexiest rings!' or expose any
jewellery-buying 'love rats' on a web cam.
Indeed, when all around it lose their heads, Tiffany's
website is a quiet haven of tranquility. It keeps its
pale blue signature colour, its font, its simplicity,
its elegance. In fact, it slows down the images of its
jewellery and other gifts so they gracefully appear on
the screen before disappearing as quietly as they
arrived.
Tiffany doesn't advertise its site in a flashy way, lest
it appears uncooth or, worse, desperate. It keeps its
static (or basic) website advertisements to the sober
online versions of the Wall Street Journal and New York
Times.
It also uses 'tiles', which are taller and slimmer than
the traditional, widely used 'banner' ads.
Versace, meanwhile, appeals to a younger, edgier crowd.
Its website attempts to do likewise, but unfortunately
uses background sounds that could only be described as
digital disco rap. Plus, as with a lot of over-excited
websites, its in-your-face style makes it difficult -
and exhausting - to navigate. But, hey, that's Versace
for you.
Waterford Wedgwood follows Tiffany's lead with a blue
and white website, but takes it further with Brady Bunch-
like panels that slowly reveal opulent photographs of
scantily clad models brandishing vases and other crystal
goblets. This sexier approach is in line with the
company's calendar and across-the-board marketing
strategy.
'Sexy isn't the word I'd use,' says a spokesman for
Waterford
Wedgwood. 'It reflects what's appealing to the consumer
and what's fashionable.' Presenting a website with
cutting-edge images helps vamp up the Waterford Wedgwood
brands. Of course, employing the services of designers
John Rocha and Paul Costelloe doesn't hurt either.
Like Prada and Louis Vuitton, Waterford Wedgwood prefers
bricks-and-mortar retailers to the Internet. It doesn't
wish to disrupt the traditional producer-retailer
relationship with the stores around the world, which
took years to build up. 'This is a dilemma of all luxury
goods producers,' the Waterford Wedgwood spokesman says.
It's not hard to see why. Companies have invested time,
effort and financial resources nurturing these
relationships. Consequently, there is a risk that web-
based retailing would damage or irrevocably alter these
lucrative relationships.
For these reasons, WaterfordWedgwood.com tells the story
of the group, giving financial information, including
links for its individual brands. 'In common with other
luxury goods producers, Waterford Wedgwood is cautiously
approaching the amount of funds it devotes to its web-
based activities,' the spokesman adds.
So, just because a company maintains a website doesn't
mean it has to lower itself to selling its goods online.
Part of the pleasure of visiting Holland & Holland in
London, for example, is the store's unique ambience: the
snooty yet deferential sales staff and the old-fashioned
ways that seem so rare these days.
Luxury goods e-commerce sites have had mixed results.
Italy's high-fashion retailer, Luxlook.com, closed its
virtual doors this year. Even though the site set itself
up as the web-based version of Barney's of New York,
Harvey Nichols of London or Brown Thomas in Dublin, it
didn't have - couldn't have - the same attraction as
those emporiums.
Luxlook even had the backing of high-profile luxury
goods companies, counting Bulgari and Valentino among
its investors. But if a customer is going to fork out
(pounds) 200 for a pair of shoes, he/she wants to be
fussed over at the very least. Thus, Luxlook folded,
joining other well-heeled ghosts such as Eve.com and
BeautyJungle.com in Internet heaven.
Despite Waterford Wedgwood treading carefully and
cautionary tales from Luxlook.com, shoppers are flocking
to the Web for more than books and CDs on Amazon.com.
According to New York-based research firm Jupiter Media
Metrix Inc, online sales are set to top up to E1 billion
by the end of 2001 and E2.2 billion by 2005.
Whether you're designing for a high street or luxury
brand, the web page must fit in with the organisation's
original brand, according to Melissa Clulow, director of
Mira Interactive web design company. 'The big catch
phrase in both graphic and Web design now is branding.
People must immediately associate the Web page with the
product.' Graphic design and web design have, therefore,
joined forces.
Conversely, if the original brand is too complicated or
if it was done on the cheap from a graphic design
perspective, it can be a difficult and, sometimes,
horrible task to create a website. As a result, from a
luxury goods point of view, designers usually have a
good start.
'Tiffany.com has the distinctive blue and silver box,'
Clulow says. 'It' s slow-moving, elegant and oozes the
brand. The website is not doing anything that would
dilute or damage its image. It's cohesive and in keeping
with what we believe Tiffany to be. But it's also
accessible as it has both straight HTML and Flash
versions of its site.'
Having a website that just uses a Flash plug-in -
allowing the smooth movement on a site such as
disappearing logos or keywords - can limit the amount of
users. Those without Flash may be the very customers who
buy Holland & Holland luxury goods or Waterford Crystal
champagne glasses.'Flash can put-off many users,' Clulow
says.
Similarly, Mira Interactive created a look on its own
site to attract certain clients. 'Our site has a crisp,
clean style, with a lot of white space,' she adds. 'We
might not necessarily be the design of choice for
Versace, but may be more up Tiffany's street.'
That's Fifth Avenue. But, if you're a Web surfer, you
probably already know that.
http://www.tiffany.com/
Copyright © 2001 Financial Times Limited - All Rights
Reserved
This article contains a reference to Tiffany & Company but more importantly it touches upon the behavior of the "extreme luxury market" such as Tiffany during times of uncertainty.
Shopping: Smythson of Bond Street crosses the pond
8/31/01 11:31 AM
Source: Reuters
By Jan Paschal
NEW YORK, Aug 30 (Reuters) - What if you needed to write a thank-you note to the Queen? Where on earth would you buy the proper stationery?
Smythson of Bond Street, supplier of stationery and leather goods to the British royal family, makes keeping up appearances a bit easier now -- with the opening of its first store on this side of the pond -- across from the tony Bergdorf Goodman store on West 57th Street near Fifth Avenue in New York City. Around the corner, and across the Avenue, is Tiffany & Co.
"It's the best-kept secret of the rich and famous," Samantha Cameron told Reuters in an interview from Smythson of Bond Street, on London's side of the pond, er, Atlantic Ocean.
Bespoke stationery, personalized to the nth degree like a bespoke suit tailored on London's Savile Row, elegant leather notebooks and other hand-crafted items have kept a certain clientele -- kings and queens, maharajahs, celebrities and their counterparts in the realms of business and fashion -- making a beeline to Smythson (the "y" sounds like a long "i") since it opened on Bond Street in 1887.
Sales at Smythson New York jumped ahead of expectations since the new store "opened quietly" two weeks ago, said Cameron, who, as creative director, designed the store as well as the company's new products.
"What we've been amazed by is that sales the last two weeks way exceeded the budget," she said. "Everybody told us New York was dead in August."
"RECESSION PROOF"
The inevitable question is: Why now? Why would Smythson of Bond Street take the plunge into Manhattan's crazy, competitive and, in some cases, dismal retail scene just as the stock market is reeling like a drunken sailor?
"We have a very loyal following," Cameron said. "We are kind of the darling of the fashion world, the fashion press at the moment. We launched a Web site last year and it attracted a huge amount of attention. It's important to expand when people are excited about you."
Smythson devotees include Madonna, shown in the privately held company's profile brochure with a Smythson bag shielding her face as she tries to escape the paparazzi.
"People like Dominick Dunne," the journalist, love Smythson's small notebooks with "this amazing paper milled in a place that does paper for bank notes," Cameron said. The pale blue paper, called "featherweight," was developed by the founder Frank Smythson.
Kurt Barnard, president of Barnard's Retail Trend Report, which forecasts and analyzes retail industry trends and consumer spending patterns, predicts success for Smythson.
"When you talk about companies like Bergdorf Goodman, like Cartier, and like this company, you're talking about companies that depend on the very rich," Barnard said.
"There are two kinds of rich people: people who depend on their income," or salary, "and those who are just naturally wealthy, people who don't care about the stock market. These are people who walk into Cartier and see an estate necklace for sale and say, 'Oh, this is beautiful. Wrap it up.' They never ask the price. We used to call them 'coupon clippers,'" a reference more commonly used in yesteryear to describe those who clip the coupons off their bond certificates and redeem them for the interest payments.
"If that store has the appeal necessary to persuade these people to take a look and to buy, they will do very well.
"I dare say the extreme luxury market has something in common with the pet food industry, as funny as it may sound," Barnard said. "No matter how bad things get, people won't let their pets starve. The stores that cater to the very wealthy are much the same way."
FOR LADIES AND GENTLEMEN
Engraved brass plates outside the new store's entrance proclaim the royal warrants Smythson holds from Queen Elizabeth, Prince Charles and the Queen Mother. Under glass in the back of the store: Princess Diana's red-and-cream stationery.
"We are the perfect place to shop for gifts that aren't clothes or jewelry," she said. "You can buy our little wee bookfor $25," hand-sewn and bound in red, black or tan leather, with blank pages to jot notes while shopping or traveling. "Then we had a lady from America last year who spent 28,000 pounds -- not dollars, but pounds! -- on her daughter's wedding invitations." (That's about $40,800 at today's exchange rate.)
Recent orders: stationery for private jets and yachts ("we have lots of pennants, perfect for yachts") and a visiting card for a dog who was made a director of his master's company, Cameron said.
"We have a lady who comes in every year and changes the tissue for her stationery so it's lined with the lipstick color she's using that year," she added.
"We serve both men and women. We're one of the few shops on Bond Street that even the oldest, most traditional of British gentlemen would feel comfortable walking in."
A replica of the crown tops the new Smythson's heavy door handle, inviting you in.
Inside, a half-dozen customers shopped the lunch hour away. A silver-haired gentleman in starched white shirt, dark tie and tailored navy suit looked at stationery and sealing wax. A woman in a sweater set and slacks inquired about the Fashion Diary, a leather-bound volume soon to be available in lipstick pink -- "our fashion color this season," said Galina Tchadliev, sales representative.
Stephen Bjorneboe, assistant manager, said, "One of the biggest reactions we're getting is that people come in and say, 'Oh, we're so glad you're finally here in the States. Whenever we're in London, we always stop in.'"
One item -- a black leather notebook with "Notes" embossed in silver on the calfskin cover and silver-edged blank pages of pale blue paper -- is already "sold out," Bjorneboe said. The price? $140.
New York Notes, a product created to celebrate the store's opening, is nearly sold out -- at $160 -- with another shipment on the way. Its pale blue leather cover sports a silver clasp. Inside its matching pale blue lined pages, edged in silver, are organized into sections for notes about favorite hotels, restaurants, bars and museums.
"People are buying this for wedding presents," Tchadliev said, as she put a copy of "New York Notes" back in the window display, after showing it to me.
I put my name on the waiting list for a copy of "New York Notes" and bought a package of "Park Avenue Pink" note cards (set of 10, $40) as a gift. The cards, made of pale pink paper embossed with a silver apple, are another item designed especially to mark the store's opening.
RESEARCH ALERT-CSFB raises Tiffany to buy
8/17/01 4:46 AM
Source: Reuters
NEW YORK, Aug 17 (Reuters) - Credit Suisse First Boston on Friday raised its rating on Tiffany & Co. to ``buy'' from ''hold,'' a day after the jewelry retailer posted second-quarter earnings in line with lowered expectations.
In a research note, analyst Richard Baum set a 12-month price target of $40.
``(Second-quarter earnings) were challenged by difficult sales and earnings comparisons and an unfavorable economic climate,'' Baum said in the note. ``Nonetheless, gross margin rate increased and expenses were well controlled.''
The analyst lowered his projection for fiscal 2001 earnings to $1.30 per share from $1.32 per share, ``consistent with management's second-half guidance.''
Tiffany on Thursday reported an 8 percent decline in second-quarter profits amid slowing sales. Net income fell to $36.1 million, or 24 cents a share, from $39.2 million, or 26 cents a share.
Baum warned that Tiffany's stock may not move up from current levels until earnings begin to reaccelerate, but said he believes there is less downside than with most apparel retailers.
``The principal risk continues to be macro-economic, not company specific,'' the analyst said.
Tiffany shares finished at $33.58 on the New York Stock Exchange Thursday. The stock has a 52-week high of $44.56 and a 52-week low of $25.12.
Copyright 2001, Reuters News Service
Tiffany Hangs Tough
Tiffany's second-quarter earnings were down slightly from the year-ago period, and management says the next quarter should be about the same. Like everyone else, the company thought sales would be stronger by now. But Tiffany is performing better than its competition, and should emerge stronger once the worldwide economic climate improves.
By Rex Moore (TMF Orangeblood)
August 16, 2001
Fine jeweler Tiffany (NYSE: TIF) may fare better than anyone else in the industry when times are tough, but for the time being it's still just swimming in place. And although management has shown it's no better at forecasting an economic turnaround than your next-door neighbor, it believes when things do get better, the company will be stronger relative to the competition.
Second-quarter earnings this morning showed sales ticking lower by less than 1% from the same period last year, but net income dropped 8%. Tiffany's inventory, meanwhile, has increased 19% over the past year. This is an indication that management had expected higher sales than it actually achieved, something it admitted in the last 10-Q. However, as Mike Trigg explained in a recent Rule Maker column, excess inventory is not as potentially harmful to a jeweler as it may be to a technology company. Diamonds aren't likely to go out of style over the next couple of quarters.
CEO Michael Kowalski, who last May thought sales would ramp up again by the second half of this year, told investors this morning he sees third-quarter earnings flat to slightly lower than last year's. "There is widespread uncertainty about the timing and magnitude of a global economic recovery," Kowalski said.
When things do improve, though, expect Tiffany to be well-positioned to capitalize. While it is seeing flat to slightly negative growth in the near future, competitors are having a tougher time. Zale (NYSE: ZLC) warned earlier this month it would miss fiscal fourth-quarter estimates badly, and said earnings per share will be down 69% to 84% from the year-ago period's. Similarly, Finlay (Nasdaq: FNLY) is expecting a second-quarter net loss of $0.10 to $0.12 a share, compared with a gain of $0.10 the prior year. (Although Wal-Mart (NYSE: WMT) is the largest jeweler in the world, that segment comprises only 2% of its sales and the company doesn't break the data out in its quarterly reports.)
So it appears Tiffany's superior brand is once again working in its favor. And given the state of its struggling competition, the company stands to emerge from the economic malaise stronger than ever.
TIFFANY'S SECOND QUARTER EARNINGS MEET EXPECTATIONS
NEW YORK, August 16, 2001 - Tiffany & Co. (NYSE-TIF) reported that net sales of $371,301,000 in the second quarter ended July 31, 2001 were 1 percent lower than $374,448,000 a year ago. Net earnings declined 8 percent to $36,052,000, or 24 cents per diluted share, compared with $39,165,000, or 26 cents per diluted share, a year ago. Net sales and net earnings increased 21 percent and 70 percent, respectively, in the second quarter of 2000.
Second quarter U.S. comparable store sales declined 4 percent, in line with guidance provided in the Company's July 10th press release. Worldwide, on a constant-exchange-rate basis, which excludes the effect of translating local-currency-denominated sales into U.S. dollars, Tiffany's net sales rose 4 percent and comparable store sales rose fractionally.
For the six months (first half) ended July 31st, net sales of $707,702,000 were 2 percent below $719,591,000 a year ago. Net earnings of $66,814,000, or 44 cents per diluted share, were 4 percent below $69,590,000, or 46 cents per diluted share, in the prior year.
Michael J. Kowalski, president and chief executive officer, said, "The current retail environment in the U.S. and certain international markets contrasts sharply with favorable conditions a year ago. The impact on our short-term results is certainly not surprising, and we remain confident in the inherent strength and potential of Tiffany's underlying business."
Results in Tiffany's three channels of distribution were as follows:
U.S. Retail sales declined 1 percent to $186,163,000 in the second quarter and 4 percent to $345,175,000 in the first half, due to comparable store sales declines of 4 percent in the quarter and 6 percent in the half. Second quarter and first half comparable store sales in Tiffany's flagship New York store declined 6 percent and 11 percent, while U.S. branch stores declined 3 percent and 4 percent. Results reflected a lower level of customer spending per transaction that offset a greater number of transactions. In 2000, U.S. comparable store sales increased 19 percent in the second quarter and 23 percent in the first half.
International Retail sales declined 2 percent to $150,574,000 in the second quarter and 1 percent to $296,997,000 in the first half. On a constant-exchange-rate basis, International Retail sales increased 9 percent in both the second quarter and first half. Comparable store sales in the second quarter and first half rose 6 percent in both periods in Japan, 3 percent and 2 percent in other Asia-Pacific markets and 17 percent and 15 percent in Europe on a constant-exchange-rate basis.
Direct Marketing sales rose 6 percent in the second quarter to $34,564,000 and 8 percent to $65,530,000 in the first half. Sales in the second quarter and first half declined 5 percent and rose 2 percent in Tiffany's corporate division, while combined catalog/Internet sales rose 18 percent and 17 percent in those periods.
Mr. Kowalski added, "Tiffany's extraordinary product selection is appreciated by growing numbers of customers in existing and new markets. Store expansion in the first half of 2001 included the opening of new locations in San Jose, Melbourne, Sao Paolo and Japan (three boutiques). In the second half of the year, new locations are planned to open in Tampa, Rome, London (a third location) and Tokyo (one boutique). Merchandising initiatives include introducing an exciting assortment of new product designs. Our long-term success will continue to be driven by a disciplined approach toward executing our business plan and will not be affected by short-term cycles.
"There is widespread uncertainty about the timing and magnitude of a global economic recovery. While the first two weeks of August indicate a continuation of recent sales trends in the U.S. and some improvement in Japan, we assume that current economic conditions will improve more gradually than originally anticipated. Based on that revised assumption and an approximate continuation of second quarter sales and margin trends, we now expect that third quarter earnings per diluted share will be in a range of 22 - 24 cents, versus 24 cents in the prior year. For the fourth quarter, we now expect that, based on modestly improving U.S. comparable store sales trends, earnings will increase to a range of 60 - 65 cents per diluted share, versus 56 cents last year. This would result in full year earnings equal to, or slightly above, the prior year and we expect further gradual acceleration throughout 2002," Mr. Kowalski concluded.
Tiffany & Co. is the internationally renowned jeweler and specialty retailer. Sales are made primarily through TIFFANY & CO. stores and boutiques in the Americas, Asia-Pacific, Europe and the Middle East. Direct Marketing includes Tiffany's corporate division, catalog and Internet sales. Additional information can be found on Tiffany's Web site, www.tiffany.com, and on its shareholder information line (800) TIF-0110.
Tiffany & Co. is the internationally renowned retailer, designer, manufacturer and distributor. The Company's merchandise offerings include an extensive selection of fine jewelry (78% of fiscal 2000 sales), timepieces, sterling silverware, china, crystal, stationery, fragrances and accessories.
The Company's three channels of distribution are: U.S. Retail, representing 50% of fiscal 2000 sales, includes retail sales in Company-operated stores in the U.S.; International Retail, representing 41% of fiscal 2000 sales, primarily includes retail sales through Company-operated stores and boutiques as well as a limited amount of corporate sales and wholesale sales to independent retailers and distributors in the Asia-Pacific region, Europe, Canada, the Middle East and Latin America; and Direct Marketing, representing 9% of fiscal 2000 sales, includes corporate (business-to-business), catalogue and Internet sales.
Tiffany's key growth strategies are fourfold: to expand its channels of distribution in important markets around the world; to complement its existing product offerings with an active product development program; through its marketing programs, to enhance customer awareness of the product designs, quality and value that Tiffany offers and to provide levels of customer service that ensure a superior shopping experience. By consistently pursuing these strategies, Tiffany has strengthened its competitive position among international retailers. The Company's mission is to be the world's most respected jewelry retailer.
The Company's shares are traded on The New York Stock Exchange with the symbol TIF. Headquartered at 727 Fifth Avenue in New York, Tiffany has more than 5,000 employees around the world.
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