Tiffany Better Than Ever
The Company achieved solid growth in worldwide net sales and in net earnings (excluding charges) in the full year.
Tiffany & Co. issued its quarterly earnings data on Friday. The company reported $1.51 earnings per share for the quarter, meeting the analysts’ consensus estimate of $1.51, AnalystRatings.Net reports. The company had revenue of $1.30 billion for the quarter, compared to the consensus estimate of $1.31 billion.
The company also recently declared a quarterly dividend, which will be paid on Friday, April 10th. Stockholders of record on Friday, March 20th will be given a dividend of $0.38 per share. This represents a $1.52 dividend on an annualized basis and a yield of 1.76%. Given global uncertainties and stronger dollar, Tiffany expects fiscal 2015 earnings to grow modestly over $4.20 earned in fiscal 2014. For the first quarter, earnings are expected to fall 30%, second quarter earnings are expected to decline marginally followed by double digit increases in the remaining two quarters.
Going ahead, Tiffany expects revenues for fiscal 2015 to increase in low-single-digits on a dollar basis and mid-single-digit on a constant-currency basis. Tiffany announced the opening of 12-15 new stores in the fiscal 2015, mostly in Asia-pacific followed by Americas and Europe.
In the fourth quarter:
- Worldwide net sales of $1.3 billion were 1% below the prior year. However, on a constant-exchange-rate basis (see «Non-GAAP Measures» schedule) which excludes the effect of translating foreign-currency-denominated sales into U.S. dollars, worldwide net sales increased 3% led by growth in Europe and Asia-Pacific, with the largest growth in the fashion jewelry category, and worldwide comparable store sales were equal to the prior year.
- Net earnings were $196 million, or $1.51 per diluted share, compared with a net loss of $104 million, or $0.81 per diluted share, in the prior year which included a charge related to an adverse arbitration ruling. Excluding that charge (see «Non GAAP Measures» schedule), net earnings increased 3% from $190 million, or $1.47 per diluted share, earned in the prior year.
In the full year:
- Worldwide net sales rose 5% to $4.25 billion. On a constant-exchange-rate basis, worldwide net sales rose 7% due to sales growth in all regions and product categories, and worldwide comparable store sales rose 4%.
- Net earnings were $484 million, or $3.73 per diluted share, compared with $181 million, or $1.41 per diluted share, in the prior year. The current year’s earnings included a pretax charge of $94 million ($61 million after tax, or $0.47 per diluted share) related to the extinguishment of debt when Tiffany redeemed $400 million of long-term debt in the third quarter (see other financial highlights below). The prior year included pretax charges of $473 million ($293 million after tax, or $2.28 per diluted share) related to the aforementioned adverse arbitration ruling and $9 million ($6 million after tax, or $0.04 per diluted share), related to staff and occupancy reductions. Therefore, excluding charges in both years (see «Non-GAAP Measures» schedule), net earnings of $545 million, or $4.20 per diluted share, in the full year were 13% higher than the $481 million, or $3.73 per diluted share, earned in the prior year.
Net sales highlights by region were as follows:
- In the Americas, both total and comparable store sales on a constant-exchange-rate basis in the fourth quarter were equal to the prior year due to softness across the U.S. Management believes recent strength of the U.S. dollar is having a negative effect on spending by foreign tourists. In the full year, both total sales and comparable store sales on that basis rose 6% due to geographically-broad-based growth across the region. As reported in U.S. dollars, total sales declined 1% to $653 million in the fourth quarter and rose 6% to $2.0 billion in the full year.
- In the Asia-Pacific region, total sales on a constant-exchange-rate basis rose 7% and comparable store sales rose 3% in the fourth quarter with noteworthy sales growth in China, Australia and Singapore, and softness in Hong Kong; on that basis for the full year, total and comparable store sales increased 10% and 4%, respectively, due to sales growth in most markets. As reported in U.S. dollars, total sales increased 4% to $284 million in the fourth quarter and rose 9% to $1.0 billion in the full year.
- In Japan, on a constant-exchange-rate basis, total sales increased 1% in the fourth quarter and comparable store sales declined 5% which management attributes to weak economic conditions affecting consumer spending; on that basis for the full year, total sales increased 4% and comparable store sales rose 1%. As reported in U.S. dollars, total sales in Japan declined 13% to $148 million in the fourth quarter and 4% to $554 million in the full year.
- In Europe, total sales on a constant-exchange-rate basis increased 9% in the fourth quarter due to growth in major markets in continental Europe and comparable store sales rose 4%; on that basis for the full year, total sales rose 6% and comparable store sales declined 1%. As reported in U.S. dollars, total sales of $162 million in the fourth quarter were unchanged from the prior year, while total sales of $497 million in the full year were 6% above the prior year.
- Other sales increased 12% to $39 million in the fourth quarter and rose 26% to $140 million in the full year, with the growth largely driven by sales in Tiffany’s new store in Moscow which opened in February 2014. Comparable store sales declined 8% in the fourth quarter and increased 8% in the full year. Wholesale sales of diamonds increased in both periods.
- Tiffany opened eight and closed two Company-operated stores in 2014. At January 31, 2015, the Company operated 295 stores (122 in the Americas, 73 in Asia-Pacific, 56 in Japan, 38 in Europe, and included in Other sales are five in the United Arab Emirates and one in Russia), versus 289 stores a year ago (121 in the Americas, 72 in Asia-Pacific, 54 in Japan, 37 in Europe and five in the U.A.E.).
Tiffany & Co, is a holding company that operates through its subsidiary companies the Company is engaged in product design, manufacturing and retailing activities. The Company’s principal subsidiary, Tiffany and Company (Tiffany), is a jeweler and specialty retailer whose principal merchandise offering is jewelry.
This is the official Tiffany& Co report.