Tiffany Raises Full Year Outlook Based on Strong Holiday Sales
January 12, 11
(IDEX Online News) - Tiffany & Co. reported that its worldwide net sales in the two-month holiday period rose 11 percent over the prior year. As a result, management increased its earnings outlook for the fiscal year to reflect the higher-than-expected holiday period results. 
Worldwide net sales increased 11 percent to $888.5 million in the holiday period. On a constant-exchange-rate basis, which excludes the effect of translating foreign-currency-denominated sales into U.S. dollars, worldwide net sales and comparable store sales increased 10 percent and 8 percent.
Sales in the Americas increased 9 percent to $484.8 million. On a constant-exchange-rate basis, sales rose 9 percent and comparable store sales increased 7 percent (comparable Americas’ branch store sales rose 8 percent and sales in the New York flagship store increased 3 percent). Internet and catalog sales in the Americas increased 8 percent.
Sales in Japan increased 11 percent to $142.5 million. On a constant-exchange-rate basis, total sales and comparable store sales rose 3 percent and 2 percent.
Sales in the Asia-Pacific region rose 23 percent to $138.9 million. On a constant-exchange-rate basis, sales increased 18 percent due to growth in most countries, and comparable store sales rose 15 percent.
Sales in Europe increased 13 percent to $114.9 million. On a constant-exchange-rate basis, sales rose 21 percent due to growth in the U.K. and most of continental Europe, and comparable store sales increased 15 percent.
Other sales declined 45 percent to $7.4 million. This resulted from an expected decrease in wholesale sales of rough diamonds (following higher-than-normal sales in the previous year), partly offset by increased wholesale sales of finished goods to independent distributors within emerging markets.
“Healthy sales growth was seen across most product categories, with particular strength in Tiffany’s fine jewelry collections, diamond engagement rings and fashion gold jewelry, although with limited growth in silver jewelry sales,” said Chairman and CEO Michael J. Kowalski.
Kowalski expects record annual sales and earnings with net sales of almost $3.1 billion and net earnings from continuing operations of $2.83-$2.88 per diluted share, versus a previous forecast made in November of $2.72-$2.77.