“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,” summarized the company in a statement.
Forthe fiscal year that ends next January, Tiffany expects global net sales to be up 10 %, led by gains in Asia and the Americas and mainly thanks to the influx of foreign visitors to bot Us and Europe. That would be an improvement over the holiday sales, but still below last year’s 18 % jump. Consequently, sales are “tracking in line” with the company’s expectations so far this quarter, Chief Executive Michael Kowalski said in a statement. In the same line, Kowalski shared the good news with analysts on a conference call, advancing that Tiffany sees long-term sales gains of 10% to 12% per year, and a 15pc increase in annual earnings.
The company forecast a full-year profit of between $3.95 and $4.05 per share, above Wall Street estimates of $3.93, according to Thomson Reuters I/B/E/S. As reported by Reuters, the famous jeweller said that much of its profit growth for the year will occur later in 2012, thanks partly to a jewellery tie-in with the upcoming “Great Gatsby” motion picture starring Leonardo DiCaprio. Tiffany is also planning to carry 15% more inventory this year to support the chain’s 175th anniversary.
Tiffany reported net income of $178.4 million, or $1.39 per share, for the fiscal fourth quarter ended January 31, down from $181.2 million, or $1.41 per share, a year earlier. That was below the $1.42 per share that Wall Street analysts were expecting, highlighted. Sales increased 8 % to $1.19 billion in the fourth quarter, in a marked slowdown from the pace of the first nine months of the fiscal year. Sales at stores open at least a year rose 5 %. The iconic diamond seller has much to thank top tourists, as spending by foreign visitors accounted for some 40 % of sales at Tiffany’s Fifth Avenue store, which generated almost one-tenth of the company’s total sales, explained the company.
In the same vein, 25 % of Tiffany’s sales in Europe came from non-European customers. Asia excluding Japan remained a major source of growth for Tiffany, with same-store sales up 13 %. That market now accounts for almost one-fifth of overall sales. Also, in Japan, Tiffany’s second-largest market after the United States, business continued to recover from the tsunami and nuclear disaster of a year ago, with same-store sales up 4 %.