Exhibit 99.1
1
TIFFANY & CO.
NEWS RELEASE
Fifth Avenue & 57th Street Contacts:
New York, N.Y. 10022 ---------
James N. Fernandez
(212)230-5315
Mark L. Aaron
(212)230-5301
TIFFANY POSTS STRONG HOLIDAY SEASON RESULTS;
--------------------------------------------
COMPARABLE U.S. STORE SALES INCREASE 16%;
-----------------------------------------
COMPANY UPDATES ITS BUSINESS OUTLOOK
------------------------------------
NEW YORK, January 8, 2004 - Tiffany & Co. (NYSE-TIF) reported that its net sales
for the holiday period from November 1 - December 31 rose 18% over the prior
year to $601,171,000. Worldwide, on a constant-exchange-rate basis that excludes
the effect of translating local-currency-denominated sales into U.S. dollars,
net sales rose 14% and comparable store sales increased 10%. Total sales growth
exceeded the Company's expectations, causing the Company to increase its
estimate for fourth quarter earnings. Results are based on unaudited sales.
Sales in Tiffany's four channels of distribution were as follows:
o U.S. Retail sales increased 19% to $306,179,000. Comparable store sales
increased 16% (up 14% in November and 16% in December), comprised of a
22% increase in Tiffany's New York flagship store and a geographically
broad-based 14% increase in branch stores.Comparable store sales growth
was driven by an increase in the average amount spent per transaction.
o International Retail sales increased 18% to $217,174,000.On a constant-
exchange-rate basis, total International Retail sales rose 7%. On that
basis, comparable retail store sales declined 7% in Japan (total retail
sales declined 3% in Japan), rose 25% in other Asia-Pacific markets and
increased 13% in Europe. Strong comparable store sales growth was also
achieved in Canada, Mexico and Brazil.
o Direct Marketing sales increased 14% to $65,003,000. Combined Internet/
catalog sales rose 27% due to continued strength in e-commerce
1
sales. Business sales declined 13%,reflecting the Company's previously-
announced decision to exit the market for employee service award
programs.
o Specialty Retail sales rose 17% to $12,815,000, due to sales growth in
LITTLE SWITZERLAND stores.
Michael J. Kowalski, chairman and chief executive officer, said, "We are
obviously pleased with the considerable strength in U.S. Retail sales which
exceeded our most-recently announced expectations. Sales in many international
regions also rose significantly, although results in Japan continued to be
disappointing primarily due to declining unit sales of silver jewelry which also
hurts gross margin. At the same time, we were delighted to see strong sales
growth of diamond jewelry in each of our major markets."
Current Outlook:
- ----------------
Mr. Kowalski added, "We expect net earnings in the fourth quarter ending January
31 to be in a range of 68 - 71 cents per diluted share, versus year-ago earnings
of 60 cents per diluted share and our previous expectation of 64 - 69 cents.
This would result in full year earnings in a range of $1.39 - $1.42 per diluted
share, representing growth of 9% - 11% over the $1.28 earned in the prior year.
The revised fourth quarter estimates are based on: a mid-teens percentage sales
increase, a modest gross margin decline and an unchanged expense ratio. We are
still engaged in our planning process for 2004, but our preliminary thoughts
call for healthy sales growth in the U.S., gradually improving international
sales results and continued business development spending. We look for overall
growth in net sales and net earnings in a range of 12% - 15%, which, at the high
end, would achieve our long-term objective that calls for annual earnings growth
of at least 15%. We will provide more detailed guidance when we report our full
year results on February 25."
Today's Conference Call:
- ------------------------
The Company will host a conference call today at 8:30 a.m. (EST) to review these
results and its outlook. Interested parties may listen to a broadcast on the
Internet at www.tiffany.com (click on "About Tiffany," "Shareholder
Information," "Conference Call") and at www.streetevents.com.
2
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, Internet and catalog sales. Specialty Retail
primarily includes the retail sales made in LITTLE SWITZERLAND stores and also
includes consolidated results from other ventures now operated or to be operated
under non-TIFFANY & CO. trademarks or trade names. Additional information can be
found on Tiffany's Web site, www.tiffany.com, and on its shareholder information
line 800-TIF-0110.
Next Earnings Announcement:
- ---------------------------
The Company anticipates reporting its fourth quarter and full year results on
February 25, 2004 and conducting a conference call at 8:30 a.m. (EST) that day,
to be broadcast at www.tiffany.com and www.streetevents.com. To receive future
notifications for conference calls and/or news release alerts, interested
parties may register at www.tiffany.com (click on "About Tiffany," "Shareholder
Information," "Calendar of Events" and "News by E-Mail").
This press release contains certain "forward-looking" statements concerning
expectations for sales, store openings, margins and earnings. Actual results
might differ materially from those projected in the forward-looking statements.
Information concerning factors that could cause actual results to differ
materially are set forth in Tiffany's 2002 Annual Report and in Form 10-K, 10-Q
and 8-K Reports filed with the Securities and Exchange Commission. The Company
undertakes no obligation to update or revise any forward-looking statements to
reflect subsequent events or circumstances.
# # #
3