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): March 1, 2000
TIFFANY & CO.
(Exact name of Registrant as specified in its charter)
Delaware 1-9494 13-3228013
(State or other jurisdiction (Commission (I.R.S. Employer
of incorporation) File Number) 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
<PAGE>
Item 5. Other Events.
On March 1, 2000, Registrant issued the following press release
announcing its sales and earnings for the three-month period and fiscal year
ended January 31, 2000:
TIFFANY'S 1999 SALES AND EARNINGS REACH RECORD LEVELS;
CONTINUED STRONG GROWTH IN COMPARABLE STORE SALES
NEW YORK, March 1, 2000 - Tiffany & Co. (NYSE-TIF) reported substantial growth
in 1999's fourth quarter and full year, with net sales and net earnings
increasing to record levels. Worldwide net sales increased 26 percent in the
quarter and 25 percent in the year due to strength in the U.S. and international
markets. Net earnings increased 59 percent in the quarter and rose 62 percent in
the year.
Michael J. Kowalski, President and Chief Executive Officer, said, "We are
extremely pleased that Tiffany continued to set new records in 1999 and that we
finished the year on such a strong note. Tiffany's appeal is clearly growing
among a worldwide customer base that appreciates extraordinary product
offerings."
In the fourth quarter ended January 31, 2000, net sales rose 26 percent to
$559,807,000, from $442,803,000 a year ago. Net earnings rose 59 percent to
$84,579,000, or $1.11 per diluted share, versus $53,295,000, or 74 cents per
diluted share, in the prior year.
For the year ended January 31, 2000, net sales rose 25 percent to
$1,461,857,000, versus $1,169,244,000 a year ago. Net earnings increased 62
percent to $145,679,000, or $1.95 per diluted share, compared with $90,062,000,
or $1.25 per diluted share, a year ago.
Earnings per share reflect a 2-for-1 split of the Company's Common Stock in July
1999.
Strong sales growth was achieved in all three of Tiffany's channels of
distribution:
o U.S. Retail sales rose 27 percent to $288,620,000 in the fourth quarter and
increased 26 percent to $741,314,000 in the year. Comparable store sales
increased 26 percent in the quarter and 20 percent in the year, which
included strength throughout Tiffany's store locations. The addition of
four new stores in 1999 further contributed to the overall sales growth.
o International Retail sales rose 27 percent in both the fourth quarter and
the year to $217,690,000 and $589,607,000, respectively. In Japan,
comparable store sales in local currency rose 13 percent in both the
quarter and the year. Strong growth was also seen in other Asia-Pacific
markets and Europe, as well as in Canada and Mexico.
o Direct Marketing sales increased 21 percent in the fourth quarter to
$53,497,000 and rose 13 percent to $130,936,000 in the year, due to growth
in Tiffany's corporate and catalog sales. Internet sales, which began in
November 1999, also contributed to the increase in sales.
Mr. Kowalski added, "We have entered 2000 with great excitement about
substantial opportunities for store expansion, product development and marketing
communications. With clear competitive advantages, we will maintain our
long-term strategic direction with focused execution in order to strengthen
Tiffany's position as an industry leader."
Tiffany & Co. is the internationally renowned jewelry and specialty retailer.
Sales are made through TIFFANY & CO. stores and boutiques, and to select
retailers and distributors, in the Americas, Asia-Pacific, Europe and the Middle
East. Direct Marketing includes Tiffany's corporate division, catalog and
Internet sales. Additional information can be found on the Company's Web site at
www.tiffany.com and on its shareholder information line (800) TIF-0110.
# # #
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TIFFANY & CO. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
(Unaudited, in thousands, except per share amounts)
<TABLE>
<CAPTION>
Three Months
Ended January 31, Year Ended January 31,
----------------------------- -------------------------------
2000 1999 2000 1999
------------ ------------- ------------- --------------
<S> <C> <C> <C> <C>
Net sales $ 559,807 $ 442,803 $ 1,461,857 $ 1,169,244
Cost of sales 210,785 183,792 608,012 514,947
------------ ------------- ------------- --------------
Gross profit 349,022 259,011 853,845 654,297
Selling, general and administrative expenses 203,013 165,790 596,962 493,175
------------ ------------- ------------- --------------
Earnings from operations 146,009 93,221 256,883 161,122
Other expenses, net 2,655 1,333 8,825 5,474
------------ ------------- ------------- --------------
Earnings before income taxes 143,354 91,888 248,058 155,648
Provision for income taxes 58,775 38,593 102,379 65,586
------------ ------------- ------------- --------------
Net earnings $ 84,579 $ 53,295 $ 145,679 $ 90,062
============ ============= ============= ==============
Net earnings per share:
Basic $ 1.17 $ 0.77 $ 2.04 $ 1.29
============ ============= ============= ==============
Diluted $ 1.11 $ 0.74 $ 1.95 $ 1.25
============ ============= ============= ==============
Weighted average number of common shares:
Basic 72,435 69,344 71,484 69,930
Diluted 76,057 71,600 74,833 71,968
Note: Shares and net earnings per share have been adjusted to reflect a 2-for-1 stock split in July 1999.
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</TABLE>
<PAGE>
TIFFANY & CO. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited, in thousands)
<TABLE>
<CAPTION>
January 31, January 31,
2000 1999
---------------- -----------------
<S> <C> <C>
ASSETS
Current assets:
Cash and cash equivalents $ 216,936 $ 188,593
Accounts receivable, net 119,356 108,381
Inventories 504,800 481,439
Deferred income taxes 30,212 18,061
Prepaid expenses and other current assets 20,357 19,170
-------------- --------------
Total current assets 891,661 815,644
Property and equipment, net 322,400 189,795
Deferred income taxes 6,235 9,032
Other assets, net 123,266 42,552
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$ 1,343,562 $ 1,057,023
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LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Short-term borrowings $ 20,646 $ 97,370
Accounts payable and accrued liabilities 176,101 140,660
Income taxes payable 53,954 32,485
Merchandise and other customer credits 30,275 22,202
-------------- --------------
Total current liabilities 280,976 292,717
Long-term debt 249,581 194,420
Postretirement/employment benefit obligations 23,165 21,539
Other long-term liabilities 32,764 31,894
Stockholders' equity 757,076 516,453
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$ 1,343,562 $ 1,057,023
============== ==============
</TABLE>
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<PAGE>
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-General Counsel,
and Secretary
Date: March 3, 2000
