Slight Sales Drop at Tiffany

August 16, 2001

Slight Sales Drop at Tiffany

Tiffany & Co. reports sales for the second quarter ended July 31 fell 1% to $371.3 million. Net earnings declined 8% to $36 million, compared with $39.2 million in the second quarter a year ago. U.S. comparable-store sales decreased 4% in the second quarter. Worldwide, on a constant exchange rate basis, Tiffany's net sales rose 4% and comparable-store sales rose fractionally.

For the six months ended July 31, net sales reached $707.7 million, a 2% decrease from sales of $719.6 in the same period last year. Earnings for the six months fell 4% to $66.8 million, down from $69.6 million last year.

U.S. retail sales declined 1% in the second quarter and 4% in the first half because of comparable-store sales declines of 4% in the quarter and 6% in the half. At Tiffany's flagship New York City store, comparable-store sales fell 6% in the second quarter and 11% in the first half while U.S. branch stores declined 3% in the quarter and 4% in the half. International retail sales dropped 2% in the second quarter and 1% in the first half.

In addition, Tiffany's direct-marketing sales rose 6% in the second quarter and 8% in the first half. Combined catalog and Internet sales rose 18% in the quarter and 17% in the half.

"The current retail environment in the U.S. and certain international markets contrasts sharply with favorable conditions a year ago," says President and CEO Michael J. Kowalski. "The impact on our short-term results is certainly not surprising, and we remain confident in the inherent strength and potential of Tiffany's underlying business."

- by Julia M. Duncan