SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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FORM 8-K
CURRENT REPORT
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Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): May 14, 2002
TIFFANY & CO.
(Exact name of Registrant as specified in its charter)
Delaware 1-9494 13-3228013
(State or other jurisdiction of (Commission File Number) (I.R.S. Employer
incorporation) Identification Number)
727 Fifth Avenue, New York, New York 10022
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (212) 755-8000
Item 5. Other Events.
On May 14, 2002, Registrant issued the following press release reporting
sales and earnings were up in the first quarter that ended April 30, 2002.
NEW YORK, May 14, 2002 - Tiffany & Co. (NYSE-TIF) reported increased sales and
earnings in the three months (first quarter) ended April 30, 2002. Higher retail
sales in the U.S., as well as an increased gross margin resulting from favorable
sales mix and product sourcing efficiencies, were the primary contributors to
the earnings growth.
Net sales of $347,129,000 in the first quarter were 3 percent higher than
$336,401,000 in the prior year. On a constant exchange rate basis that excludes
translation effects between foreign currencies and the U.S. dollar, net sales
increased 6 percent and comparable store sales rose 1 percent. Net earnings in
the first quarter increased 6 percent to $32,709,000, or 22 cents per diluted
share, compared with $30,762,000, or 20 cents per diluted share, in the prior
year. Results were consistent with the Company's guidance provided in a press
release on April 25, 2002.
In Tiffany's three channels of distribution:
o U.S. Retail sales increased 4 percent to $165,670,000. Comparable store
sales increased 2 percent, comprised of 2 percent comparable store sales
growth in Tiffany's branch stores and a less-than-1 percent sales decline
in Tiffany's New York flagship store. Sales growth benefited from increased
numbers of transactions, but the average transaction size was lower. Sales
to foreign tourists in certain markets also declined. New stores opened in
the past year generated strong initial results.
o International Retail sales rose 1 percent to $147,638,000. On a constant
exchange rate basis, however, International Retail sales increased 8
percent. On that basis, comparable retail store sales declined 1 percent in
Japan (total retail sales in Japan rose 7 percent), increased 5 percent in
other Asia-Pacific markets and declined 5 percent in Europe.
o Direct Marketing sales increased 9 percent to $33,821,000. Combined
catalog/internet sales rose 37 percent and Business sales declined 11
percent.
Michael J. Kowalski, president and chief executive officer, said, "We are
certainly encouraged with the improved U.S. trends during the first quarter and
are pleased with the 19% increase in earnings from operations. Tiffany's
reputation continues to strengthen among a growing customer base that
appreciates the extraordinary designs and quality of our product offerings. We
will introduce new jewelry designs and timepieces later this year which we
expect will further reinforce our reputation for excellence."
He added, "Tiffany's internal initiatives are exciting and promising. However,
the external environment remains unsettled with an uncertain near-term outlook.
Therefore, we believe it is prudent to maintain our previous expectations that
are based upon challenging U.S. and international conditions in the coming
months followed by improvement
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in the second half of the year. As such, Tiffany's net earnings per diluted
share expectations call for: 22-24 cents in the second quarter (compared with 24
cents in the prior year); 18-20 cents in the third quarter (compared with 16
cents); and 64-67 cents in the fourth quarter (compared with 55 cents)."
The Company will host a conference call today at 8:30 a.m. (EST) to review its
first quarter results and outlook. Interested parties may listen to a broadcast
on the Internet at www.shareholder.com/tiffany, www.vcall.com or
www.streetevents.com.
Tiffany & Co. is the internationally renowned jeweler and specialty retailer.
Sales are made primarily through company-operated TIFFANY & CO. stores and
boutiques in the Americas, Asia-Pacific and Europe. Direct Marketing includes
Tiffany's Business Sales division, catalog and Internet sales. Additional
information can be found on Tiffany's Web site, www.tiffany.com, and on its
shareholder information line (800) TIF-0110.
This press release contains certain "forward-looking" statements concerning
expectations for sales, margins and earnings. Actual results might differ
materially from those projected in the forward-looking statements. Information
concerning factors that could cause actual results to differ materially are set
forth in Tiffany's 2001 Annual Report and in Form 10-K, 10-Q and 8-K Reports
filed with the Securities and Exchange Commission. The Company undertakes no
obligation to update or revise any forward-looking statements to reflect
subsequent events or circumstances.
# # #
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TIFFANY & CO. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
(Unaudited, in thousands, except per share amounts)
Three months
ended April 30,
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2002 2001
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Net sales $ 347,129 $ 336,401
Cost of sales 140,714 146,261
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Gross profit 206,415 190,140
Selling, general and administrative expenses 147,849 140,919
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Earnings from operations 58,566 49,221
Other expense (income), net 4,052 (2,047)
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Earnings before income taxes 54,514 51,268
Provision for income taxes 21,805 20,506
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Net earnings $ 32,709 $ 30,762
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Net earnings per share:
Basic $ 0.22 $ 0.21
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Diluted $ 0.22 $ 0.20
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Weighted average number of common shares:
Basic 145,434 145,915
Diluted 150,181 151,304
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TIFFANY & CO. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited, in thousands)
April 30, January 31, April 30,
2002 2002 2001
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ASSETS
Current assets:
Cash and cash equivalents $ 145,265 $ 173,675 $ 124,695
Accounts receivable, net 100,982 98,527 94,011
Inventories, net 653,082 611,653 665,893
Deferred income taxes 45,796 41,170 33,383
Prepaid expenses and other current assets 33,841 29,389 36,715
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Total current assets 978,966 954,414 954,697
Property, plant and equipment, net 540,384 525,585 444,489
Deferred income taxes 5,452 4,560 4,917
Other assets, net 145,659 145,309 138,187
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$ 1,670,461 $ 1,629,868 $ 1,542,290
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LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Short-term borrowings $ 41,975 $ 40,402 $ 33,933
Current portion of long-term debt 51,500 51,500 -
Obligation under capital lease - - 41,581
Accounts payable and accrued liabilities 171,906 161,782 162,942
Income taxes payable 27,743 48,997 21,794
Merchandise and other customer credits 38,184 38,755 36,135
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Total current liabilities 331,308 341,436 296,385
Long-term debt 181,995 179,065 236,141
Postretirement/employment benefit obligations 31,333 29,999 27,030
Other long-term liabilities 43,337 42,423 37,596
Stockholders' equity 1,082,488 1,036,945 945,138
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$ 1,670,461 $ 1,629,868 $ 1,542,290
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934,
the Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
TIFFANY & CO.
BY: /s/ Patrick B. Dorsey
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Patrick B. Dorsey
Senior Vice President, Secretary and
General Counsel
Date: May 14, 2002
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