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.
