Tiffany's Earnings Increase 31% in 2000

March 6, 2001

Tiffany's Earnings Increase 31% in 2000

Tiffany & Co. reported record sales and earnings for the fiscal year ended Jan. 31. Net sales rose 13% to $1.67 billion, while net earnings increased 31% to $190.6 million.

Comparable-store sales rose 13% worldwide. In the U.S., Tiffany's retail sales rose 12% to $833 million while international retail sales rose 15% to $679 million. "Full year results in 2000 extended our record of strong annual sales and earnings growth, although recent uncertainty surrounding the economy and equity markets, not surprisingly, affected customers' average spending levels," says Michael J. Kowalski, president and CEO. "In light of expectations for continued unsettled economic conditions in the coming months, as well as tough comparisons to last year's strong first half, we believe it's prudent to expect earnings in the first half of 2001 to be approximately equal to the prior year."

Tiffany bases its financial expectations on the assumption that U.S. consumer confidence will improve in the second half of the year. Financial expectations for 2001 include net sales growth in the high-single-digit range in the U.S., healthy growth in international markets, new store openings in U.S. and international markets and healthy growth in Direct Marketing sales. The company also expects modest improvements in gross margin and its operating expense ratio, higher interest expense, an unchanged tax rate and annual net earnings growth of 10%-15%.

- by Julia M. Duncan