Tiffany & Co. (NYSE: TIF) today reported its financial results for the fourth quarter and fiscal year ended January 31, 2013. In the quarter, worldwide net sales increased 4% and net earnings rose 1%. In the year, worldwide net sales increased 4% while net earnings declined 5% (or 11% when excluding nonrecurring items in the prior year – see “Non-GAAP Measures” schedule). Earnings per diluted share were $1.40 in the quarter and $3.25 in the year. Management also provided its financial forecast for the fiscal year ending January 31, 2014.
In the three months (“fourth quarter”) ended January 31, 2013:
- Worldwide net sales rose 4% to $1.2 billion. On a constant-exchange-rate basis that excludes the effect of translating foreign-currency-denominated sales into U.S. dollars (see “Non-GAAP Measures” schedule), worldwide net sales rose 5% due to growth in all regions and comparable store sales equaled the prior year.
- Net earnings increased 1% to $180 million, or $1.40 per diluted share, versus $178 million, or $1.39 per diluted share, in the prior year.
In the 12 months (“full year”) ended January 31, 2013:
- Worldwide net sales increased 4% to $3.8 billion. On a constant-exchange-rate basis, worldwide net sales increased 5% due to growth in all regions and comparable store sales rose 1%.
- Net earnings declined 5% to $416 million, or $3.25 per diluted share, from $439 million, or $3.40 per diluted share, in the prior year.
- Net earnings in fiscal 2011 had included $26 million, or $0.20 per diluted share, for nonrecurring items related to the relocation of Tiffany’s New York headquarters staff. Excluding those nonrecurring items, net earnings of $3.25 per diluted share were 10% below last year’s $3.60.
Michael J. Kowalski, chairman and chief executive officer, said, “These quarterly sales results were consistent with the holiday trends we had issued in early January. While financial results in fiscal 2012 were disappointing due to lower-than-expected sales growth and pressures on gross margin, we continued to maintain a longer-term focus on strengthening global awareness of the TIFFANY & CO. brand and on further developing compelling product offerings.”