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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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FORM 8-K
CURRENT REPORT
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Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): March 3, 1999
TIFFANY & CO.
(Exact name of Registrant as specified in its charter)
Delaware 1-9494 13-3228013
(State or other jurisdiction (Commission (I.R.S. Employer
of incorporation) File Number) Identification
Number)
727 Fifth Avenue, New York, New York 10022
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (212) 755-8000
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Item 5. Other Events.
On March 3, 1999, Registrant issued the following press release
announcing its sales and earnings for the three-month period and fiscal year
ended January 31, 1999:
TIFFANY ACHIEVES RECORD RESULTS IN 1998;
EARNINGS RISE 24 PERCENT; WORLDWIDE SALES UP 15 PERCENT
NEW YORK, March 3, 1999 - Tiffany & Co. (NYSE-TIF) reported that its net
earnings rose 27 percent in the fourth quarter and 24 percent in the fiscal year
ended January 31, 1999. Strong sales growth in the U.S. and major international
markets, combined with higher operating margins, led to record earnings.
In the fourth quarter, net sales of $442,803,000 were 20 percent above
$367,694,000 a year ago. Net earnings rose 27 percent to $53,295,000, or $1.49
per diluted share, compared with $42,099,000, or $1.17 per diluted share, in the
prior year.
In the fiscal year, net sales rose 15 percent to $1,169,244,000, compared with
$1,017,616,000 in the prior year. Net earnings increased 24 percent to
$90,062,000, or $2.50 per diluted share, compared with $72,822,000, or $2.02 per
diluted share, in the prior year.
Sales results in Tiffany's three channels of distribution were as follows:
o U.S. Retail sales rose 24 percent to $227,147,000 in the fourth quarter and
increased 20 percent to $590,666,000 in the fiscal year. Growth was
generated by comparable store sales increases of 12 percent in the fourth
quarter and 10 percent in the year, as well as by five new U.S. stores that
were opened during the past year.
o International Retail sales increased 21 percent to $171,487,000 in the
fourth quarter and 10 percent to $462,474,000 in the year. In Japan, sales
in local currency increased 13 percent in the fourth quarter and 20 percent
in the year, largely due to comparable store sales growth of 10 percent in
the quarter and 15 percent in the year. The Asia-Pacific region outside
Japan achieved modest comparable store sales growth in the fourth quarter,
while strong sales growth continued in Europe.
o Direct Marketing sales of $44,169,000 in the fourth quarter and
$116,104,000 in the year were higher than the prior-year periods by 3
percent and 10 percent, respectively, due to growth in Tiffany's corporate
and catalog sales.
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William R. Chaney, Chairman, said, "We are very pleased that 1998 was another
year of record performance. Despite challenging conditions in certain markets
during the year, Tiffany's growth strategies continued to demonstrate their
ability to generate strong sales and earnings growth."
Michael J. Kowalski, President and Chief Executive Officer, added, "Tiffany's
growth potential remains very substantial around the world. In the years ahead,
we will continue to focus on exciting opportunities for store expansion, the
introduction of new jewelry and tableware collections, and marketing
communications that further enhance customer recognition of Tiffany's
exceptional product offerings."
Tiffany & Co. is the internationally renowned jeweler and specialty retailer.
Sales are made through TIFFANY & CO. stores and boutiques, and to select
retailers and distributors, in the Americas, Asia-Pacific, Europe and the Middle
East. Direct Marketing sales are made through Tiffany's Corporate and Catalog
divisions. Additional information can be found on the Company's web site at
www.tiffany.com.
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TIFFANY & CO. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
(Unaudited, in thousands, except per share amounts)
Three Months
Ended January 31, Year Ended January 31,
----------------------------- ---------------------------------
1999 1998 1999 1998
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Net sales $ 442,803 $ 367,694 $ 1,169,244 $ 1,017,616
Cost of sales 183,792 153,246 514,947 453,408
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Gross profit 259,011 214,448 654,297 564,208
Selling, general and administrative expenses 165,790 138,400 493,175 430,786
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Earnings from operations 93,221 76,048 161,122 133,422
Other expenses, net 1,333 2,190 5,474 5,664
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Earnings before income taxes 91,888 73,858 155,648 127,758
Provision for income taxes 38,593 31,759 65,586 54,936
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Net earnings $ 53,295 $ 42,099 $ 90,062 $ 72,822
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Net earnings per share:
Basic $ 1.54 $ 1.20 $ 2.58 $ 2.08
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Diluted $ 1.49 $ 1.17 $ 2.50 $ 2.02
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Weighted average number of common shares:
Basic 34,672 35,002 34,965 34,953
Diluted 35,800 35,999 35,984 36,104
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TIFFANY & CO. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited, in thousands)
January 31, January 31,
1999 1998
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ASSETS
Current assets:
Cash and cash equivalents $ 188,593 $ 107,252
Accounts receivable 108,381 99,492
Inventories 481,439 386,431
Deferred income taxes 18,061 17,373
Prepaid expenses and other current assets 19,170 20,539
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Total current assets 815,644 631,087
Property and equipment, net 189,795 156,367
Deferred income taxes 9,032 8,859
Other assets, net 42,552 30,754
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$ 1,057,023 $ 827,067
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LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Short-term borrowings $ 97,370 $ 90,054
Accounts payable and accrued liabilities 140,660 118,456
Income taxes payable 32,485 23,501
Merchandise and other customer credits 22,202 17,992
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Total current liabilities 292,717 250,003
Reserve for product return 0 2,580
Long-term debt 194,420 90,930
Postretirement/employment benefit obligations 21,539 20,121
Other long-term liabilities 31,894 19,709
Stockholders' equity 516,453 443,724
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$ 1,057,023 $ 827,067
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934,
the Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
TIFFANY & CO.
By: /s/ James N. Fernandez
____________________________
James N. Fernandez
Executive Vice President
Date: March 4, 1999 and Chief Financial Officer