ADDING and REPLACING Tiffany Reports Second Quarter Results.NEW YORK New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of -- ADD: Please add following table header (1) In a disk or tape file, a set of data that resides permanently at the beginning. It may be used for identification only (type of file, date of last update, etc.), or it may describe the structural layout of the contents, as is common with many document and database formats. before second table:
TIFFANY & CO. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited, in thousands)
The corrected release reads: TIFFANY Tiffany, Tiffanie (UK) a semi-longhaired version of the Burmese cat. It has a fine, silky coat in many colors. REPORTS SECOND QUARTER RESULTS Tiffany & Co. (NYSE NYSE See: New York Stock Exchange : TIF TIF Tagged Image File (file name extension) TIF Tax Increment Financing TIF Temporary Internet Files TIF Transport Innovation Fund (UK) TIF Telecommunications Infrastructure Fund ) reported that its net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight increased 11% in the second quarter. Comparable store sales rose 6% in the U.S. and 1% in local currency in Japan. Earnings from operations increased 27% due to the sales growth and its leverage effect on selling, general and administrative expenses. Net earnings in the three months (second quarter) ended July July: see month. 31, 2005 increased 53% to $50,551,000, or $0.35 per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share, from $33,090,000, or $0.22 per diluted share. Net earnings in the six months (first half) ended July 31, 2005 rose 30% to $90,609,000, or $0.62 per diluted share, versus $69,901,000, or $0.47 per diluted share. As a result of the American American, river, 30 mi (48 km) long, rising in N central Calif. in the Sierra Nevada and flowing SW into the Sacramento River at Sacramento. The discovery of gold at Sutter's Mill (see Sutter, John Augustus) along the river in 1848 led to the California gold rush of Jobs Creation Act of 2004, the effective tax rates in both periods were lower than the prior year, which boosted earnings by $0.05 per diluted share in the second quarter and $0.06 per diluted share in the first half. Net sales in the second quarter increased 11% to $526,701,000, compared with $476,597,000. On a constant-exchange-rate basis that excludes currency effects from translating foreign-denominated sales into U.S. dollars, net sales increased 10% and worldwide comparable store sales increased 4% (see attached "Non-GAAP Measures"). In the first half, net sales rose 11% to $1,036,602,000, compared with $933,557,000 in the prior year. On a constant-exchange-rate basis, net sales rose 10% and worldwide comparable store sales rose 4%.
Sales in Tiffany's channels of distribution were as follows:
-- U.S. Retail sales increased 8% to $267,710,000 in the second
quarter and 11% to $523,562,000 in the first half. Comparable
store sales rose 6% in the second quarter due to growth of 6%
in comparable branch store sales and 3% in New York flagship
store sales. Comparable store sales increased 8% in the first
half due to growth of 8% in branch store sales and 7% in the
New York flagship store. The Company opened a store in Carmel,
California in the second quarter and now operates 56 TIFFANY &
CO. stores in the U.S.
Effective in the second quarter, the Company placed
responsibility for U.S. business gift sales within the U.S.
Retail channel and, consequently, now reports U.S. business
gift sales in that channel. In the past, such sales were
reported in the Direct Marketing channel, which will continue
to report business gift sales transacted by e-commerce. The
prior-year amounts have been reclassified to conform to the
current-year presentation. An attached schedule highlights the
changes.
-- Direct Marketing sales increased 5% to $30,354,000 in the
second quarter and 9% to $59,290,000 in the first half,
primarily due to increases in the amounts spent per e-commerce
and catalog order.
-- International Retail sales increased 12% to $202,104,000 in
the second quarter and 7% to $392,420,000 in the first half.
On a constant-exchange-rate basis, international retail sales
rose 9% in the quarter and 5% in the half, including
comparable store sales growth of 3% in the quarter and a
decline of 2% in the half. On that basis, comparable store
sales increased 1% in the quarter and declined 5% in the half
in Japan (total retail sales rose 5% in the quarter and
fractionally in the half); rose 6% in both periods in the
Asia-Pacific region outside Japan; and increased 5% and 2% in
Europe. The Company added retail locations in Brisbane,
Australia and in Paris, France (its third location) in the
second quarter and operates 94 TIFFANY & CO. international
stores and boutiques.
-- Other sales increased 43% to $26,533,000 in the second quarter
and 52% to $61,330,000 in the first half. These increases were
largely due to sales of rough diamonds (such sales commenced
in the third quarter of 2004 and will continue on a regular
basis as a component of the Company's direct diamond sourcing
initiatives). Also contributing to growth were sales increases
of 6% and 13% in the Company's LITTLE SWITZERLAND stores, and
sales in the first two IRIDESSE stores which opened last fall
and focus exclusively on the pearl jewelry category.
Other Financial Highlights:
-- Gross margin (gross profit as a percentage of net sales) of
55.5% in the second quarter was equal to the prior year. Gross
margin of 54.7% in the first half was lower than 56.1% in the
prior year, largely due to changes in geographic/product sales
mix and higher product costs, as well as wholesale sales of
rough diamonds which earn a minimal or no gross margin. The
Company recorded LIFO inventory charges of $2,952,000 in the
second quarter and $4,169,000 in the first half, compared with
charges of $5,453,000 and $9,027,000 in the prior year.
-- Selling, general and administrative ("SG&A") expenses in both
the second quarter and first half were 6% higher than the
prior-year periods. The ratio of SG&A expenses to net sales
improved to 41.4% in the second quarter and 41.1% in the first
half, versus 43.3% and 43.1% in the prior year, due to the
leverage effect of strong sales growth on fixed SG&A expenses.
-- The operating margin (earnings from operations as a percentage
of net sales) increased to 14.1% in the second quarter, versus
12.2% in the prior year, and rose to 13.6% in the first half,
versus 13.0% a year ago.
-- Effective tax rates of 28.0% in the second quarter and 31.5%
in the first half were lower than 38.0% in the prior-year
periods. The decreases were due to additional tax benefits of
$6,600,000, or $0.05 per diluted share, in the second quarter
and $8,100,000, or $0.06 per diluted share, in the first half,
which were related to the repatriation provisions of the
American Jobs Creation Act of 2004.
-- Net inventories at July 31, 2005 were 3% higher than a year
ago. Finished goods inventories rose 9% in support of
broadened product offerings and new stores. Combined raw
material and work-in-process inventories declined 10%,
reflecting a substantial buildup last year during the initial
development of rough diamond sourcing activities.
-- The Company continues to repurchase its shares. In the second
quarter, the Company repurchased and retired 1,538,520 shares
of its Common Stock at a total cost of $49,970,000, or an
average cost of $32.48 per share. In the first half, it
repurchased and retired 2,575,312 shares of its Common Stock
at a total cost of $83,948,000, or an average cost of $32.60
per share. Approximately $325 million remains available for
future repurchases under the currently authorized plan.
-- The Company's financial position remains strong. At July 31,
2005, cash and cash equivalents were $128,611,000 (versus
$153,623,000 a year ago), total debt was $404,263,000 (versus
$586,337,000 a year ago) and stockholders' equity was
$1,693,975,000 (versus $1,507,608,000 a year ago). Total debt
as a percentage of stockholders' equity was 24% at July 31,
2005, versus 39% a year ago.
Michael Michael, archangel Michael (mī`kəl) [Heb.,=who is like God?], archangel prominent in Christian, Jewish, and Muslim traditions. In the Bible and early Jewish literature, Michael is one of the angels of God's presence. J. Kowalski Kowalski (feminine: Kowalska, plural Kowalscy) is the second most common surname in Poland (139,719). It translates to blacksmith were it is the patronymic form of the name for Smith (see Kowal), other surnames such as Kowalczyk, and Kowalewicz were derived from the , chairman and chief executive officer, said, "These quarterly results are encouraging and we believe well-position Tiffany for a successful second half. Our full-year objectives call for an 8-10% increase in net sales, including U.S. comparable store sales growth in a mid-to-high single-digit range and Japan comparable store sales in local currency approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. equal to the prior year. For the full year, we continue to expect a modest year-over-year decline in gross margin, a low-to-mid single-digit percentage increase in SG&A expenses, approximately $20 million of other expenses, net and an effective tax rate of approximately 36%. Based on these reported actual results, we believe it is reasonable for us to increase our expectation for full year 2005 net earnings to a range of $1.55 - $1.65 per diluted share, from the previous range of $1.45 - $1.55. In addition, the Company is on track to achieve its objective for a mid-single-digit percentage increase in inventories for the full year, which should contribute to an improving return on assets Return on assets (ROA) Indicator of profitability. Determined by dividing net income for the past 12 months by total average assets. Result is shown as a percentage. ROA can be decomposed into return on sales (net income/sales) multiplied by asset utilization (sales/assets). ." Conference Call The Company will conduct a conference call today at 8:30 a.m. (EST EST electroshock therapy. EST abbr. electroshock therapy ) to review its results and outlook. Interested parties may listen to a broadcast on the Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the at www.tiffany.com (click on "About Tiffany," "Shareholder Information," "Conference Call") and at www.streetevents.com. Next Scheduled Announcement The Company anticipates reporting its third quarter results on November November: see month. 30, 2005 and conducting a conference call at 8:30 a.m. (EST), to be broadcast at www.tiffany.com and www.streetevents.com. To receive future notifications for conference calls and/or and/or conj. Used to indicate that either or both of the items connected by it are involved. Usage Note: And/or is widely used in legal and business writing. news release alerts, interested parties may register at www.tiffany.com (click on "About Tiffany," "Shareholder Information," "Calendar of Events" and "News by E-Mail"). Company Description Tiffany & Co. operates jewelry jewelry, personal adornments worn for ornament or utility, to show rank or wealth, or to follow superstitious custom or fashion. The most universal forms of jewelry are the necklace, bracelet, ring, pin, and earring. and specialty A contract under seal. A specialty is a written document that has been sealed and delivered and is given as security for the payment of a specifically indicated debt. retail stores and manufactures products through its subsidiary corporations. Its principal subsidiary is Tiffany and Company. The Company operates TIFFANY & CO. retail stores and boutiques in the Americas A·mer·i·cas , the See America. , Asia-Pacific The term Asia-Pacific generally applies to littoral East Asia, Southeast Asia and Australasia near the Pacific Ocean, plus the states in the ocean itself (Oceania). and Europe Europe (y  r`əp), 6th largest continent, c.4,000,000 sq mi (10,360,000 sq km) including adjacent islands (1992 est. pop. 512,000,000). and engages in direct selling Direct selling is the marketing of products or services to consumers through sales tactics including presentations, demonstrations, and phone calls. It is sometimes also considered to be a sale that does not utilize a "middle man" such as a retail outlets, distributors or brokers. through Internet, catalog catalog, descriptive list, on cards or in a book, of the contents of a library. Assurbanipal's library at Nineveh was cataloged on shelves of slate. The first known subject catalog was compiled by Callimachus at the Alexandrian Library in the 3d cent. B.C. and business
gift operations. Other operations include consolidated con·sol·i·date v. con·sol·i·dat·ed, con·sol·i·dat·ing, con·sol·i·dates v.tr. 1. To unite into one system or whole; combine: results from ventures operated under trademarks or trade names other than TIFFANY & CO. For additional information, please visit www.tiffany.com or call our shareholder information line at 800-TIF-0110. This document contains certain "forward-looking for·ward-look·ing adj. Concerned with or making provision for the future: forward-looking educators; a forward-looking corporate plan. Adj. 1. " statements concerning the Company's objectives and expectations with respect to sales, store openings, gross margins, expenses, earnings and inventories. Actual results might differ materially from those projected in the forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. . Information concerning risk factors that could cause actual results to differ materially is set forth in the Company's 2004 Annual Report and in Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. , 10-Q and 8-K Reports filed with the Securities and Exchange Commission. The Company undertakes no obligation to update or revise any forward-looking statements to reflect subsequent events or circumstances CIRCUMSTANCES, evidence. The particulars which accompany a fact. 2. The facts proved are either possible or impossible, ordinary and probable, or extraordinary and improbable, recent or ancient; they may have happened near us, or afar off; they are public or .
TIFFANY & CO. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
(Unaudited, in thousands, except per share amounts)
Three Months Ended Six Months Ended
July 31, July 31,
------------------ -------------------
2005 2004 2005 2004
--------- -------- ---------- --------
Net sales $526,701 $476,597 $1,036,602 $933,557
Cost of sales 234,617 212,109 469,697 410,193
--------- -------- ---------- --------
Gross profit 292,084 264,488 566,905 523,364
Selling, general and
administrative expenses 218,016 206,318 426,526 402,499
--------- -------- ---------- --------
Earnings from operations 74,068 58,170 140,379 120,865
Other expenses, net 3,858 4,798 8,064 8,122
--------- -------- ---------- --------
Earnings before income taxes 70,210 53,372 132,315 112,743
Provision for income taxes 19,659 20,282 41,706 42,842
--------- -------- ---------- --------
Net earnings $ 50,551 $ 33,090 $ 90,609 $ 69,901
========= ======== ========== ========
Net earnings per share:
Basic $ 0.35 $ 0.23 $ 0.63 $ 0.48
========= ======== ========== ========
Diluted $ 0.35 $ 0.22 $ 0.62 $ 0.47
========= ======== ========== ========
Weighted-average number of
common shares:
Basic 142,989 146,370 143,618 146,593
Diluted 144,930 148,592 145,533 148,944
TIFFANY & CO. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited, in thousands)
July 31, January 31, July 31,
2005 2005 2004
----------- ----------- -----------
ASSETS
------
Current assets:
Cash and cash equivalents $ 128,611 $ 187,681 $ 153,623
Short-term investments - 139,200 -
Accounts receivable, net 126,000 133,545 114,596
Inventories, net 1,066,371 1,057,245 1,034,404
Deferred income taxes 72,084 64,790 52,598
Prepaid expenses and other current
assets 51,991 25,428 50,029
----------- ----------- ----------
Total current assets 1,445,057 1,607,889 1,405,250
Property, plant and equipment, net 916,374 917,853 892,436
Other assets, net 139,237 140,376 182,361
----------- ----------- ----------
$2,500,668 $2,666,118 $2,480,047
=========== =========== ==========
LIABILITIES AND STOCKHOLDERS'
EQUITY
-----------------------------
Current liabilities:
Short-term borrowings $ 22,966 $ 42,957 $ 157,941
Current portion of long-term debt - - 49,033
Accounts payable and accrued
liabilities 178,322 186,013 173,635
Income taxes payable 20,510 118,536 21,831
Merchandise and other customer
credits 51,491 52,315 47,776
---------- ---------- ---------
Total current liabilities 273,289 399,821 450,216
Long-term debt 381,297 397,606 379,363
Postretirement/employment benefit
obligations 40,778 40,220 37,917
Deferred income taxes 9,790 33,175 17,713
Other long-term liabilities 101,539 94,136 87,228
Stockholders' equity 1,693,975 1,701,160 1,507,610
---------- ---------- ---------
$2,500,668 $2,666,118 $2,480,047
NON-GAAP MEASURES The Company reports information in accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with U.S. Generally Accepted Accounting Principles The standard accounting rules, regulations, and procedures used by companies in maintaining their financial records. Generally accepted accounting principles (GAAP) provide companies and accountants with a consistent set of guidelines that cover both broad accounting ("GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). "). Internally, management monitors the sales performance of its international stores and boutiques 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 uses this constant-exchange-rate measure because it believes it is a more representative assessment of the sales performance of its international stores and boutiques 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 net sales percentage increases (decreases) from the GAAP to the non-GAAP basis:
Three Months Ended Six Months Ended
July 31, 2005 July 31, 2005
------------------------- -------------------------
GAAP Trans- Constant- GAAP Trans- Constant-
Reported lation Exchange- Reported lation Exchange-
Effect Rate Effect Rate
Basis Basis
------------------------- -------------------------
Net Sales:
----------
Worldwide 11% 1% 10% 11% 1% 10%
U.S. Retail 8% - 8% 11% - 11%
International
Retail 12% 3% 9% 7% 2% 5%
Japan 6% 1% 5% 1% 1% -
Other Asia-
Pacific 24% 6% 18% 21% 5% 16%
Europe 10% - 10% 10% 2% 8%
Comparable Store
Sales:
----------------
Worldwide 5% 1% 4% 5% 1% 4%
U.S. Retail 6% - 6% 8% - 8%
International
Retail 5% 2% 3% 1% 3% (2%)
Japan 2% 1% 1% (4%) 1% (5%)
Other Asia-
Pacific 12% 6% 6% 10% 4% 6%
Europe 6% 1% 5% 4% 2% 2%
SEGMENT REPORTING segment reporting A type of financial reporting in which the firm discloses information by identifiable industry segments. For example, Union Pacific Corporation reports revenues, income, assets, depreciation, and capital expenditures for each of four RECLASSIFICATION Reclassification The process of changing the class of mutual funds once certain requirements have been met. These requirements are generally placed on load mutual funds. Reclassification is not considered to be a taxable event. Effective with the current reporting period, the Company placed responsibility for U.S. business-to-business  This article or section needs copy editing for grammar, style, cohesion, tone and/or spelling.You can assist by [ editing it] now. sales within the U.S. Retail channel and, consequently, now reports business-to-business sales in that channel. In the past, such sales were reported in the Direct Marketing channel, which will continue to report business-to-business Internet transactions. The prior year's amounts affected by the change have been reclassified to conform to Verb 1. conform to - satisfy a condition or restriction; "Does this paper meet the requirements for the degree?" fit, meet coordinate - be co-ordinated; "These activities coordinate well" the current year presentation as follows:
Originally Reported
----------------------------------------------------------------------
(in thousands) Q1 2004 Q2 2004 Q3 2004 Q4 2004 Q1 2005
--------- --------- --------- --------- ---------
U.S. Retail $213,662 $236,770 $216,500 $396,960 $243,411
Direct Marketing 36,899 40,274 36,861 81,427 41,377
--------- --------- --------- --------- ---------
$250,561 $277,044 $253,361 $478,387 $284,788
--------- --------- --------- --------- ---------
Reclassified
----------------------------------------------------------------------
(in thousands) Q1 2004 Q2 2004 Q3 2004 Q4 2004 Q1 2005
--------- --------- --------- --------- ---------
U.S. Retail $225,002 $248,134 $227,029 $416,680 $255,852
Direct Marketing 25,559 28,910 26,332 61,707 28,936
--------- --------- --------- --------- ---------
$250,561 $277,044 $253,361 $478,387 $284,788
--------- --------- --------- --------- ---------
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