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TIFFANY REPORTS THIRD QUARTER RESULTS; HIGHER U.S. AND JAPAN SALES LEAD TO INCREASED EARNINGS

 NEW YORK, Nov. 15 /PRNewswire/ -- Worldwide sales of Tiffany & Co. (NYSE: TIF) rose 27 percent in the three months ended October 31, 1993 due to increased U.S. Retail and International Retail Sales. Higher earnings were also achieved.
 In the third quarter of 1993, net sales were $134,750,000, compared with $105,897,000 in the 1992 period. Net income was $3,255,000, or 21 cents per share, compared with $56,000 in the prior year.
 Sales for Tiffany's three channels of distribution, and comparisons with respective 1992 periods, were as follows: U.S. Retail sales rose 10 percent to $62,584,000 in the third quarter and increased 9 percent to $171,766,000 in the nine-month period; Direct Marketing sales of $20,260,000 in the third quarter equaled the prior year, and rose 1 percent to $57,454,000 in the nine-month period; International Retail sales rose 79 percent to $51,906,000 in the third quarter and increased 8 percent to $129,244,000 in the nine-month period. The increase in International Retail sales in the third quarter reflects the business realignment in Japan in mid-1993, which results in Tiffany now recording retail sales to consumers in Japan instead of wholesale sales to Mitsukoshi.
 For the nine months ended October 31, net sales of $358,464,000 were 7 percent above 1992's level of $333,965,000. A net loss of $28,258,000, or $1.79 per share, was incurred, which included a non-recurring charge in the second quarter for the repurchase of inventory previously sold to Mitsukoshi Ltd. This was related to Tiffany's assumption of marketing and merchandising responsibility for retail activities at 29 TIFFANY & CO. boutiques previously operated by Mitsukoshi in Japan. Excluding the charge, earnings in the nine-month period would have been $4,455,000, or 28 cents per share. In 1992's nine-month period, net income was $7,048,000, or 45 cents per share.
 Commenting on the results, Mr. William R. Chaney, Chairman, said, "We are encouraged by healthy sales growth in most of our U.S. retail branch stores, and remain focused on developing our newer U.S. and international stores to their fullest potential. In addition, having now assumed marketing and merchandising responsibilities in Japan, we have a great opportunity to capitalize upon longer-term growth opportunities in that important market."
 Mr. Chaney added, "As we continue to pursue Tiffany's expansion strategy in major markets around the world, we are equally committed to achieving enhanced profitability through prudent control of expenses and inventory management. In fact, the expense increase in the third quarter was almost entirely due to the realignment of our Japan business. Inventory productivity has also improved. As consumer confidence improves, the strategic initiatives taken during 1993 should further enhance Tiffany's potential to achieve strong sales and earnings growth."
 Tiffany & Co. is the internationally renowned jeweler and specialty retailer. Sales are made through TIFFANY & CO. stores and boutiques, and to retailers and distributors, primarily in the United States, the Far East, Europe, Canada and the Middle East. Direct Marketing sales are made through Tiffany's corporate and catalog divisions.
 TIFFANY & CO. AND SUBSIDIARIES
 Condensed Consolidated Statements of Income
 (Unaudited, in thousands, except per share amounts)
 For the periods Three Months Nine Months
 ended Oct. 31, 1993 1992 1993 1992
 Net sales $134,750 $105,897 $358,464 $333,965
 Product return for
 Japan realignment 0 0 (115,000) 0
 Total 134,750 105,897 243,464 333,965
 Cost of goods sold 62,918 51,593 180,404 171,074
 Cost related to product
 return for Japan
 realignment 0 0 (57,500) 0
 Gross profit 71,832 54,304 120,560 162,891
 Selling, general and
 administrative expenses 63,916 53,697 164,614 146,733
 Income/(loss) from
 operations 7,916 607 (44,054) 16,158
 Other expenses, net 2,201 1,541 5,611 4,994
 Income/(loss) before
 income taxes 5,715 (934) (49,665) 11,164
 Provision/(benefit)
 for income taxes 2,460 (990) (21,407) 4,116
 Net income/(loss) $3,255 $56 $(28,258) $7,048
 Net income/(loss)
 per share:
 Primary $0.21 $0.00 $(1.79) $0.45
 Fully diluted $0.21 $0.00 $(1.79) $0.45
 Weighted ae? number
 of common shares:
 Primary 15,797 15,746 15,775 15,781
 Fully diluted 16,701 16,639 16,689 16,674
 Condensed Consolidated Balance Sheets
 (In thousands)
 Oct. 31, Jan. 31, Oct. 31,
 1993 1993 1992
 (Unaudited) (Unaudited)
 Assets
 Current assets
 Cash and short-term
 investments $5,887 $6,672 $5,140
 Accounts receivable,
 net 60,085 51,378 48,235
 Inventories 262,720 224,151 247,613
 Prepaid expenses
 and other 29,851 10,107 12,436
 Total current assets 358,543 292,308 313,424
 Property and equipment 99,701 94,454 93,971
 Deferred income taxes 18,680 5,723 5,445
 Other assets, net 25,887 25,770 25,912
 Total assets $502,811 $418,255 $438,752
 Liabilities and
 Stockholders' Equity
 Current liabilities
 Short-term borrowings $61,544 $22,458 $90,434
 Accounts payable and
 accrued liabilities 91,652 61,919 66,049
 Income taxes payable 1,347 2,679 840
 Merchandise and other
 customer credits 5,634 5,318 4,755
 Total current
 liabilities 160,177 92,374 162,078
 Long-term debt 101,500 101,500 50,000
 Deferred income taxes
 and other liabilities 31,046 6,015 10,135
 Reserve for product
 return 22,765 0 0
 Postretirement benefit
 obligation 14,985 13,560 12,785
 Stockholders' equity 172,338 204,806 203,754
 Total liabilities and
 stockholders' equity $502,811 $418,255 $438,752
 -0- 11/15/93
 /CONTACT: James N. Fernandez, 212-605-4015, or Mark L. Aaron, 212-605-4016, both of Tiffany/
 (TIF)


CO: Tiffany & Co. ST: New York IN: REA SU: ERN

SH-TW -- NY027 -- 4260 11/15/93 09:26 EST
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Date:Nov 15, 1993
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