TIFFANY financial reports exceed expectations
US based jeweller TIFFANY reported this weekdouble-digit sales and earnings growth for the year ended January 31, 2012 (fiscal 2011). Net sales rose 18% to US$3.6 billion and net earnings rose 19% to U$439 million, or US$3.40 per diluted share. Net earnings increased 24% excluding nonrecurring items and earnings per diluted share rose 23% to $3.60. “Tiffany exceeded the goals that we had set at the start of 2011 for both sales and earnings growth, although we concluded the year with softer-than-expected results. Nonetheless, we remain focused on successfully executing our long-term strategies and pursuing Tiffany’s substantial global growth potential in 2012 and beyond.” Michael J. Kowalski, chairman and chief executive officer, said.
Worldwide net sales rose 18% to $3.6 billion.Net earnings rose 19% to $439 million, or $3.40 per diluted share, compared with $368 million, or $2.87 per diluted share, in the prior year. Net earnings as a percentage of net sales rose to 12.1%, from 11.9% in the prior year.
Net sales highlights were as follows:
In the Americas region, sales increased 15% to $1.8 billion in fiscal 2011 and rose 5% to $605 million in the fourth quarter. On a constant-exchange-rate basis, total Americas sales rose 14% in fiscal 2011 and 5% in the fourth quarter, largely due to comparable store sales increasing 13% in the year and 3% in the fourth quarter; on that basis, comparable branch store sales in the Americas increased 11% in the year and 3% in the fourth quarter, while sales in the New York flagship store increased 20% in the year and 2% in the fourth quarter. Combined Internet and catalog sales in the Americas rose 6% in fiscal 2011 and declined 4% in the fourth quarter.
In the Asia-Pacific region, sales rose 36% to $748 million in the full year and increased 19% to $225 million in the fourth quarter. On a constant-exchange-rate basis, total sales and comparable store sales rose 31% and 27% in the year, and rose 18% and 13% in the fourth quarter, due to increased sales in most countries. In Japan, sales increased 13% to $617 million in fiscal 2011 and rose 12% to $204 million in the four th quarter. On a constant-exchange-rate basis, total sales in Japan rose 3% in the year and 5% in the fourth quarter and comparable store sales increased 4% in both periods. In Europe, sales increased 17% to $421 million in the fiscal year and 3% to $142 million in the fourth quarter. On a constant-exchange-rate basis, total sales in Europe rose 12% in the year and 3% in the fourth quarter while comparable store sales increased 6% in the year and declined 2% in the fourth quarter. Throughout the fourth quarter and year, sales growth in Continental Europe was relatively stronger than results in the U.K. At January 31, 2012, the Company operated 247 stores (102 in the Americas, 58 in Asia-Pacific, 55 in Japan and 32 in Europe), versus 233 (96 in the Americas, 52 in Asia-Pacific, 56 in Japan and 29 in Europe) a year ago. Other sales declined 5% to $51 million in the fiscal year and 22% to $12 million in the fourth quarter due to declines in wholesal e sales of rough diamonds in both periods as well as lower wholesale sales of finished products to independent distributors in the fourth quarter. Mr. Kowalski added, “Over the coming year as we commemorate the 175th anniversary of Tiffany’s founding in 1837, we are confident that Tiffany & Co. is better positioned t han ever in terms of its increased physical presence and brand awareness around the world, and we are confident in Tiffany’s long-term, substantial growth potential. Our expansion plans for 2012 include opening a net of 24 stores in important markets, delivering extraordinary product offerings with several new jewelry collections, increasing our marketing spending and providing superior shopping experiences.