A one percent decline in worldwide sales reflected weakness in the U.S. offset by increased sales outside the U.S. Net earnings fell in comparison with the prior year, when a substantial gain was recorded on a sale and leaseback transaction.
Michael J. Kowalski, chairman and chief executive officer of Tiffany & Co, said, "Customers have adjusted their spending in reaction to economic conditions and near-term uncertainties. Despite that, Tiffany maintained a high level of profitability in the third quarter and, in fact, net earnings per share rose 13% when excluding certain items from the prior year."
Net sales declined 1% to $618.2 million in the third quarter. On a constant-exchange-rate basis which excludes the effect of translating foreign-currency-denominated sales into U.S. dollars (see attached "Non-GAAP Measures" schedule), worldwide net sales declined 2% and comparable store sales declined 7%.
In the nine-month period (year-to-date), net sales increased 7% to $2.0 billion. On a constant-exchange-rate basis, worldwide net sales rose 4% and comparable store sales declined 2%.
Net earnings from continuing operations in the third quarter were $43.8 million, or $0.35 per diluted share. In the prior year, net earnings from continuing operations of $103.1 million, or $0.74 per diluted share.

TIFFANY & CO. Tiffany Somerset ring

TIFFANY & CO. Atlas pendant

TIFFANY & CO. Tiffany Cushion Two-row bracelet

Saturday, November 28, 2009