Home / Knowledge / News / Fashion / 'We will generate substantial cash from operations' - Tiffany Chairman
'We will generate substantial cash from operations' - Tiffany Chairman
30
May '09
Tiffany & Co. reported lower sales, operating margin and net earnings for its first quarter ended April 30, 2009. These financial results were consistent with management's expectations for the quarter and the Company reaffirmed its outlook for the full year.

Net sales in the first quarter declined 22% to $523.1 million. On a constant-exchange-rate basis, which excludes the effect of translating foreign-currency-denominated sales into U.S. dollars (see attached "Non-GAAP Measures" schedule), worldwide net sales declined 18%, with a 21% decline in comparable store sales.

Net earnings in the first quarter were $24.3 million, or $0.20 per diluted share, compared with $64.4 million, or $0.50 per diluted share, in the prior year.

Michael J. Kowalski, chairman and chief executive officer, said, "Despite reduced consumer demand in the luxury sector, Tiffany is, and is projected to remain, solidly profitable and will generate substantial cash from operations. We remain confident about the continued effectiveness of our fundamental growth strategies, and in their ability to generate superior financial returns when economic conditions improve."

Net sales by segment were as follows:
• In the Americas, first quarter sales declined 31% to $259.0 million. Comparable U.S. store sales declined 34%, which included a 32% decline in comparable branch store sales and a 42% decline in New York flagship store sales. Tiffany opened stores in Toronto (its second) and Guadalajara. Combined Internet and catalog sales in the U.S. declined 17%.
• In the Asia-Pacific region, first quarter sales declined 9% to $201.4 million. Results varied by country. On a constant-exchange-rate basis, sales declined 7% and comparable store sales declined 9%. The Company opened stores in Hangzhou, China and Busan, Korea, and closed one in Ikebukuro, Japan.
• In Europe, sales of $55.6 million were 8% below the prior year. On a constant-exchange-rate basis, sales increased 18% largely due to incremental sales from new stores opened in the prior year, and comparable store sales rose 3%.
• The Company operated 209 TIFFANY & CO. stores and boutiques at April 30, 2009 (88 in the Americas, 97 in Asia-Pacific and 24 in Europe), versus 192 locations a year ago (81 in the Americas, 93 in Asia-Pacific and 18 in Europe).
• Other sales declined 43% to $7.0 million in the first quarter due to reduced wholesale sales of diamonds partly offset by higher sales in soon-to-be-closed IRIDESSE stores.

Other financial highlights were:
• Gross margin (gross profit as a percentage of net sales) was 55.6% in the first quarter, compared with 57.1% in the prior year, primarily due to higher product costs.
• Selling, general and administrative (SG&A) expenses declined 15% in the first quarter, reflecting reduced staff and marketing costs, as well as variable cost savings tied to lower sales levels.
• Interest and other expenses, net in the first quarter were higher than the prior year primarily due to increased interest expense related to recent issuances of long-term debt.


Must ReadView All

Uzbekistan, S Korea to launch textile techno park in Sept

Textiles | On 19th Feb 2018

Uzbekistan, S Korea to launch textile techno park in Sept

Uzbekistan and South Korea plan to launch a modern textile techno...

Hyosung to invest Rs 3,000 cr in Maharashtra spandex unit

Textiles | On 19th Feb 2018

Hyosung to invest Rs 3,000 cr in Maharashtra spandex unit

The largest global spandex producer Hyosung Corporation of South...

Courtesy: VF Corporation

Apparel/Garments | On 19th Feb 2018

VF Corp Q4 revenue climbs 20% to $3.6 billion

The revenue of VF Corporation, a global leader in branded lifestyle...

Interviews View All

Deepak Jain
Baggout

We are using Facebook and Instagram to promote ourselves

Mohammad Mamun Ar Rashid
UL VS Bangladesh Ltd

Productivity, creativity and innovation play a vital role in the growth of ...

Darshan Mehta
Infinium Polychem

We are spending double digit figures on R&D

Vikas Banduke

Softech Controls Private Limited (SCPL) is a part of the Cotmac Group, an...

Ravindra Jain, Ashish Baid

Oswal Prints Private Limited has been manufacturing and exporting ethnic...

Erik Sy

Manila-based CustomThread is a start-up offering premium custom apparel...

Marten Alkhagen
Swerea IVF AB

Marten Alkhagen, Senior Scientist - Nonwoven and Technical Textiles of...

Kai Poehler
Voith Paper GmbH & Co. KG

The glass mat industry is growing by five to eight per cent annually. Kai...

Eric Scholler
Groz-Beckert

The Indian market has huge potential in technical textiles, and by far,...

Bani Batra

Bani Batra’s couture wedding collection is inspired by traditional Indian...

Rupa Sood and Sharan Apparao
Nayaab

Nayaab, an exhibition meant to celebrate Indian weaves, is in its second...

Pranav Mishra
Huemn

Designers Pranav Mishra and Shyma Shetty’s Huemn is known for its...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

February 2018

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
70.6%
No
12.7%
Skip
16.7%

Total Votes: 102

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
63.7%
No
29.4%
Skip
6.9%

Total Votes: 102

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
88.2%
No
8.8%
Skip
2.9%

Total Votes: 102

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
83.3%
No
7.8%
Skip
8.8%

Total Votes: 102


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search