Tiffany U.S Holiday Results -.Comparable Store Sales up 6%

Luxury retailer Tiffany & Co. holiday season net sales increased 6 percent to $712 million. However, not all was well, as the retailer witnessed a one percent decline in sales at its flagship New York store.

Tiffany U.S. holiday sales from November 1 - December 31 increased 8 percent to $386 million, thanks to an increase in the average per transaction purchase. Comparable store sales rose 6 percent, owing to an 8 percent increase in branch store sales. Four new stores opened in 2005, which also contributed to sales growth. The Company now operates 59 Tiffany & Co. stores in the U.S.

The results are based on unaudited sales.

International Retail sales declined 1 percent to $241 million. However, on a constant-exchange-rate basis, international retail sales rose 8 percent, due to a 7 percent increase in total retail sales in Japan and growth in most other markets. On the same basis, international comparable store sales increased 6 percent, including 7 percent growth in Japan, and 11 percent growth in other Asia-Pacific markets and Europe equal to the prior year. The Company operates 95 Tiffany & Co. international stores and boutiques.

Direct marketing sales rose 14 percent to $63.66 million, owing to substantial growth in Internet sales tied to increases in the number of orders and the average order size.

Other sales rose 14 percent to $21.48 million, primarily due to increased wholesale sales of diamonds. Six IRIDESSE stores, which focus exclusively on the pearl jewelry category, added to sales growth, while sales in Little Switzerland stores were approximately equal to the prior year.

Michael J. Kowalski, chairman and CEO, said, "We were extremely pleased that holiday sales growth was broad-based geographically and in various jewelry categories. Diamond jewelry sales continued to be especially strong. Assuming no meaningful change in sales or margin trends in January, we are now forecasting full year 2005 earnings of $1.60-$1.62 per diluted share, versus our previously announced forecast of $1.55-$1.65 per diluted share."