Tiffany Fiscal Sales Fall, but Q4 Rises 17% to $981.4 Million
March 22, 10
 While buyers returned to Tiffany stores in the fourth quarter, Japanese buyers kept out. Photo: Guwashi |
The luxury retailer reported that its fourth quarter net sales increased to $981.4 million, compared with $837.6 million in last year's fourth quarter. On a constant-exchange-rate basis, worldwide net sales rose 13 percent and comparable store sales rose 8 percent.
Net earnings from continuing operations were $138.2 million compared to $37.4 million in last year's fourth quarter.
“This increase reflected broad-based growth in the Americas, Asia-Pacific and European regions,” the company stated.
Full-year sales declined to $2.7 billion. On a constant-exchange-rate basis, global net sales and comparable store sales declined 5 percent and 8 percent, respectively. Net earnings from continuing operations were $265.7 million compared with $232.2 million in the prior year.
“Notwithstanding the global economic challenges over the past year, the decisive measures we took to control spending were successful,” said Chairman and CEO Michael J. Kowalski.
In the Americas, sales increased 14 percent to $523.5 million in the fourth quarter. Sales of $1.41 billion in the fiscal year were 11 percent below the prior year. Comparable U.S. store sales rose 11 percent in the fourth quarter but declined 15 percent in the fiscal year.
Combined Internet and catalog sales in the U.S. increased 16 percent in the quarter and declined 1 percent in the year.
In the Asia-Pacific region, sales rose 14 percent to $318 million in the quarter due to strong growth in all countries except Japan. Sales increased 4 percent to $957.2 million in the year. Comparable store sales increased 3 percent and declined 3 percent in those periods.
In Europe, sales increased 29 percent to $122.9 million in the fourth quarter and 10 percent to $311.8 million in the year due to strong growth in most countries. Comparable store sales increased 14 percent and 9 percent respectively.
Other sales were $17.1 million in the fourth quarter versus $3.7 million in the prior year, and in the full year were $29.9 million versus $55.6 million in the prior year. The changes in both periods were affected by the levels of wholesale sales of rough diamonds, Tiffany noted.
In its 2010 outlook, Tiffany expects global sales to rise 11 percent. By region, sales are expected to increase by a low-double-digit percentage in the Americas, a high-single-digit percentage in Asia-Pacific (including a low-single-digit percentage decline in Japan and at least 20 percent growth elsewhere), and a mid-teens percentage in Europe.