Tiffany Direct Marketing sales equal to prior year

11 Jan '08

3 min read

In addition, a 10% increase in New York flagship store sales in the holiday period was driven by foreign tourist spending. We believe a recent pullback in U.S. spending likely reflected a more cautious attitude among customers about the near-term direction of the economy and related factors. From a product perspective, we saw healthy sales growth in the engagement jewelry and silver jewelry categories.”

Assuming no material change in trends through the end of the fiscal year on January 31, the Company's financial performance expectations for fiscal 2007 call for (i) net sales growth of approximately 14% and (ii) net earnings from continuing operations per diluted share in a range of $2.60 - $2.63 which includes (a) a $0.48 per diluted share after-tax gain from the sale and leaseback of Tiffany's Tokyo flagship store and (b) a $0.04 per diluted share after-tax contribution to The Tiffany & Co.

Foundation, both of which were recorded in the third quarter, and (c) a pre-tax charge of approximately $20 million, or $0.09 cents per diluted share after tax, to be recorded in the fourth quarter and related to the discontinuance of certain watches as a result of the Company's recent agreement with The Swatch Group Ltd to expand distribution of watches.

Excluding those three items, it equates to $2.25 - $2.28 per diluted share and compares with a previous expectation of $2.25 - $2.30 per diluted share. Net earnings, which include a charge related to the sale of Little Switzerland and its losses from operations, are expected to be in a range of $2.40 - $2.43 per diluted share.

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