SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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FORM 8-K
CURRENT REPORT
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Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): January 7, 2003
TIFFANY & CO.
(Exact name of Registrant as specified in its charter)
Delaware 1-9494 13-3228013
(State or other jurisdiction of (Commission File Number) (I.R.S. Employer
incorporation) Identification
Number)
727 Fifth Avenue, New York, New York 10022
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (212) 755-8000
Item 5. Other Events.
On January 7, 2003, Registrant issued the following press release announcing its
preliminary, unaudited sales figures for the period from November 1 to December
31, 2002:
TIFFANY'S HOLIDAY SALES INCREASE 8 PERCENT;
SALES INCREASE IN U.S., DECLINE IN JAPAN
NEW YORK, January 7, 2003 - Tiffany & Co. (NYSE-TIF) reported that net sales in
the holiday period from November 1 - December 31 increased 8 percent over the
prior year to $509,054,000. On a constant-exchange-rate basis that excludes the
effect of translating local-currency-denominated sales into U.S. dollars, net
sales rose 6 percent and comparable worldwide store sales declined 1 percent.
Sales increased in each channel of distribution. Results are based on unaudited
sales.
Michael J. Kowalski, president and chief executive officer, said, "We believe
that these holiday season results, which were below our expectations, reflect
the same consumer sentiments that are adversely affecting other retailers in
U.S. and international markets."
o U.S. Retail sales increased 3 percent to $257,183,000. Comparable store
sales rose 1 percent, comprised of a 6 percent increase in November and
a 1 percent decline in December. Comparable store sales resulted from
an increase in the number of transactions offset by a decline in the
average dollars spent per transaction. Sales at Tiffany's New York
flagship store were equal to the prior year and comparable branch store
sales rose 1 percent.
o International Retail sales rose 6 percent to $183,925,000.On a constant
-exchange-rate basis, International Retail sales rose 2 percent;on that
basis, comparable store sales declined 10 percent in Japan, increased
9 percent in other Asia-Pacific markets, increased 11 percent in Europe
and rose in Canada and Latin America.
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o Direct Marketing sales increased 11 percent to $56,948,000. Combined
Internet/catalog sales rose 20 percent due to strong e-commerce sales.
Business sales declined 3 percent.
o Specialty Retail sales were $10,998,000, primarily reflecting the
consolidated net sales of Little Switzerland, Inc. stores which the
Company acquired in October 2002.
Mr. Kowalski added, "Based on an assumption of generally similar trends in
January, we should expect net sales in the fourth quarter to increase 8-10
percent over the prior year. Combined with an expected lower gross margin and an
increased expense ratio, we now expect net earnings in a range of 57-62 cents
per diluted share in the fourth quarter ending January 31, 2003 (compared with
our previous expectation of 60-65 cents). This would result in full year
earnings of $1.25-$1.30 per diluted share, compared with $1.15 per diluted share
in 2001."
"From an external perspective, we are dealing with uncertain times, but the
appeal of Tiffany's extraordinary products remains strong. We are still in the
planning process for 2003, but our preliminary thoughts call for increases of
8-12 percent in both net sales and net earnings (excluding the effect of a
non-recurring tax benefit in the third quarter of 2002) for the year. That
assumes weaker first half results with growth accelerating as the year
progresses. Strategically, we fully intend to use our strong financial position
to maintain our normal, selective rate of expansion in distribution and new
product offerings, which ultimately strengthen Tiffany's potential to achieve
sustainable, longer-term growth. We plan to report fourth quarter and full year
results on February 26," Mr. Kowalski concluded.
The Company will host a conference call today at 8:30 a.m. (EST) to review its
holiday sales results and outlook. Interested parties may listen to a broadcast
on the Internet at www.shareholder.com/tiffany and www.streetevents.com.
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Tiffany & Co. is the internationally renowned jeweler and specialty retailer.
Sales are made primarily through company-operated TIFFANY & CO. stores and
boutiques in the Americas, Asia-Pacific and Europe. Direct Marketing includes
Tiffany's Business Sales division, Internet and catalog sales. Specialty Retail
primarily includes the retail sales made in Little Switzerland, Inc. stores and
also includes consolidated results from other ventures now or in the future
operated under non-TIFFANY & CO. trademarks or trade names. Additional
information can be found on Tiffany's Web site, www.tiffany.com, and on its
shareholder information line (800) TIF-0110.
This press release contains certain "forward-looking" statements concerning
expectations for sales, margins and earnings. Actual results might differ
materially from those projected in the forward-looking statements. Information
concerning factors that could cause actual results to differ materially are set
forth in Tiffany's 2001 Annual Report and in Form 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.
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
TIFFANY & CO.
BY: /s/ James N. Fernandez
____________________________
James N. Fernandez
Executive Vice President and
Chief Financial Officer
Date: January 7, 2003
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