Tiffany Sales Booming; New Retail Concept for Pearls Planned

November 13, 2003

Tiffany Sales Booming; New Retail Concept for Pearls Planned

Tiffany & Co. reports U.S. sales in the third quarter ended Oct. 31 rose 16% on a comparable store basis. For the year-to-date, comp-store sales rose 9%. Overall U.S. retail sales in the third quarter rose 20% while year-to-date sales rose 13% . The store attributed comparable store sales growth to an increased average transaction amount and an increased number of transactions.

"We are delighted with the dramatically improving sales trends we've seen in the U.S. this year, characterized by extraordinary growth in diamond jewelry sales, as well as strength in a number of international markets. And we are excited with the continued exceptional results in our e-commerce business," says Michael J. Kowalski, chairman and CEO.

The company saw 18% growth in its worldwide net sales in the third quarter ended Oct. 31, 2003. Net earnings were 20% lower than the prior year, due to a prior-year tax benefit. Direct marketing sales in the third quarter rose 5% and year-to-date sales rose 10%. Combined Internet/catalog sales increased 23% in the quarter and 22% in the year-to-date due to continued strength in e-commerce sales.

The company expects a low-double-digit percentage increase in net sales (assuming comparable store sales increasing by low-double-digits in the U.S. and low-single-digits in Japan), for the fourth quarter.

"Tiffany will continue its pursuit of healthy and sustainable organic growth through new store openings, product introductions and enhanced customer awareness of high-quality, emotionally resonant products to celebrate life's important occasions," says Kowalski. "Similarly, we will also pursue further development of our specialty retail channel. In fact, we plan to launch a new non-Tiffany & Co. retail concept in 2004, which will capitalize on the underserved and competitively fragmented market for pearl jewelry."

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