(IDEX Online) - Tiffany & Co. (NYSE:TIF) reported worldwide net sales increased 4% to $4.2 billion in its financial year ended January 31, 2018.
The results reflected sales growth in most regions and across most jewelry categories; comparable store sales were equal to the prior year and were consistent with guidance previously issued.
Net earnings of $370 million were 17% below the prior year's $446 million, however, net earnings in 2017 included charges recorded in the fourth quarter totaling $146 million, related to the enactment of the U.S. Tax Cuts and Jobs Act.
In the fourth quarter, worldwide net sales rose 9% to $1.3 billion, resulting from growth in all regions and across all product categories; comparable store sales rose 3%. Net earnings of $62 million were 61% below the prior year's $158 million.
Net sales by region were as follows:
In the Americas, total net sales rose 2% to $1.9 billion in the full year and 5% to $619 million in the fourth quarter; comparable store sales increased 1% and 5% in the respective periods. There were no meaningful geographic differences across the region. On a constant-exchange-rate basis, total sales increased 1% in the full year and 5% in the fourth quarter; comparable store sales were unchanged in the full year and up 4% in the fourth quarter. In Asia-Pacific, total net sales increased 10% to $1.1 billion in the full year and 13% to $320 million in the fourth quarter; comparable store sales declined 1% and rose 3% in those respective periods. Total net sales growth reflected higher wholesale and retail sales; on a comparable store sales basis, the full year decline reflected strong sales growth in mainland China that was offset by lower sales in most other countries, while the fourth quarter sales growth benefited from performance across Greater China. On a constant-exchange-rate basis, total sales rose 8% in the full year and 9% in the fourth quarter, with comparable store sales declining 2% and 1% in the respective periods. In Japan, total net sales of $596 million in the full year were 1% below the prior year, while sales in the fourth quarter rose 2% to $189 million; comparable store sales declined 1% and rose 1%, respectively. On a constant-exchange-rate basis, total sales rose 1% in both the full year and fourth quarter; comparable store sales rose 2% in the full year and were unchanged in the fourth quarter. In Europe, total net sales rose 6% in the full year to $483 million and 13% to $165 million in the fourth quarter, reflecting the positive effects from currency translation, new stores and e-commerce sales growth; comparable store sales declined 2% and rose 1% in the respective periods, which management attributes in part to softness across much of the region as well as negative effects from new stores on existing store sales. On a constant-exchange-rate basis, total sales rose 3% in the full year and 4% in the fourth quarter, and comparable store sales declined 4% and 8%, respectively. Other net sales were $125 million in the full year and $41 million in the fourth quarter, representing increases of 26% and 48% over the respective prior-year periods. Growth in both periods reflected higher wholesale sales of diamonds as well as comparable stores sales growth of 2% and 6%, respectively. Tiffany opened nine Company-operated stores in the full year and closed seven. At January 31, 2018, the Company operated 315 stores (124 in the Americas, 87 in Asia-Pacific, 54 in Japan, 46 in Europe, and four in the UAE), versus 313 stores a year ago (125 in the Americas, 85 in Asia-Pacific, 55 in Japan, 43 in Europe, and five in the UAE). From a product category perspective, in the full year, sales increased in the Jewelry Collections category (which now combines the previously-reported High, Fine and Solitaire Jewelry and the Fashion Jewelry categories) and the Designer Jewelry category and decreased in the Engagement Jewelry category, while in the fourth quarter, all categories achieved varying degrees of sales growth.