- Sales in the Americas region increased 3% to $516 million in the holiday period. On a constant-exchange-rate basis, total sales increased 2%, and comparable store sales declined 2% in the New York flagship store and in branch stores. Performance was relatively similar across much of the region. Internet and catalog sales rose 4%.
- Sales in the Asia-Pacific region increased 13% to $187 million. On a constant-exchange-rate basis, total sales increased 11% (due to growth in Greater China and most other markets) and comparable store sales rose 7%.
- In Japan, total sales of $153 million were 5% below the prior year. However, on a constant-exchange-rate basis, both total sales and comparable store sales rose 1%.
- In Europe, sales increased 2% to $119 million due to mixed performances by country. On a constant-exchange-rate basis, total sales also increased 2% and comparable store sales were equal to the prior year.
- Other sales increased 114% to $17 million, largely reflecting the conversion in July of five TIFFANY & CO. stores in the United Arab Emirates from independently-operated distribution to Company-operated retail stores.
- At December 31, 2012, the Company operated 274 stores (115 in the Americas, 65 in Asia-Pacific, 55 in Japan, 34 in Europe and five in the U.A.E.), compared with 246 stores (102 in the Americas, 57 in Asia-Pacific, 55 in Japan and 32 in Europe) a year ago.
TIFFANY & CO. AND SUBSIDIARIES(Unaudited)NON-GAAP MEASURES Net Sales The Company’s reported sales reflect either a translation-related benefit from strengthening foreign currencies or a detriment from a strengthening U.S. dollar. The Company reports information in accordance with U.S. Generally Accepted Accounting Principles (“GAAP”). Internally, management monitors its sales performance on a non-GAAP basis that eliminates the positive or negative effects that result from translating international sales into U.S. dollars (“constant-exchange-rate basis”). Management believes this constant-exchange-rate basis provides a more representative assessment of the sales performance and provides better comparability between reporting periods. The Company’s management does not, nor does it suggest that investors should, consider such non-GAAP financial measures in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. The Company presents such non-GAAP financial measures in reporting its financial results to provide investors with an additional tool to evaluate the Company’s operating results. The following table reconciles sales percentage increases (decreases) from the GAAP to the non-GAAP basis versus the previous year:
|Two Months Ended December 31, 2012||Eleven Months Ended December 31, 2012|
|GAAP Reported||Translation Effect||Constant- Exchange-Rate Basis||GAAP Reported||TranslationEffect||Constant- Exchange-Rate Basis|
|Worldwide||4 %||–||4 %||4 %||(1) %||5 %|
|Americas||3 %||1 %||2 %||2 %||–||2 %|
|Asia-Pacific||13 %||2 %||11 %||8 %||1 %||7 %|
|Japan||(5) %||(6) %||1 %||5 %||(1) %||6 %|
|Europe||2 %||–||2 %||2 %||(5) %||7 %|
|Comparable Store Sales:|
|Worldwide||–||–||–||–||(1) %||1 %|
|Americas||(2) %||–||(2) %||(2) %||–||(2)%|
|Asia-Pacific||10 %||3 %||7 %||2 %||–||2 %|
|Japan||(5) %||(6) %||1 %||5 %||(2) %||7 %|
|Europe||(1) %||(1) %||–||(2) %||(4) %||2 %|