<PAGE>
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): August 16, 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
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Item 5. Other Events.
On August 16, 2000, Registrant issued the following press release
announcing its sales and earnings for the three-month period ended July 31,
2000:
NEW YORK, August 16, 2000 - Tiffany & Co. (NYSE-TIF) reported that its worldwide
sales rose 21 percent in the second quarter and, combined with higher margins,
net earnings rose 70 percent. Strong growth was achieved in all key markets,
highlighted by comparable store sales growth of 19 percent in the U.S. and 12
percent in local currency in Japan.
In the second quarter ended July 31, 2000, net sales of $371,977,000 were 21
percent above 1999's second quarter of $307,067,000. Net earnings rose 70
percent to $39,165,000, or 26 cents per diluted share, compared with
$22,981,000, or 16 cents per diluted share, in the prior year.
In the six-month period (first half) ended July 31, 2000, net sales rose 23
percent to $715,229,000, compared with $579,344,000 in 1999's first half. Net
earnings increased 78 percent to $69,590,000, or 46 cents per diluted share,
versus $39,138,000, or 27 cents per diluted share, a year ago.
Net earnings per share figures are adjusted to reflect the Company's two-for-one
stock split in July 2000.
U.S. Retail sales rose 18 percent to $187,927,000 in the second quarter and
increased 23 percent to $357,119,000 in the first half, which includes the
effect of Tiffany's discontinuation of U.S. wholesale trade sales in
January 2000. Comparable store sales rose 19 percent in the second quarter
and 23 percent in the first half due to solid growth throughout the U.S.,
and results in four new stores were strong.
International Retail sales increased 26 percent to $153,254,000 in the
second quarter and rose 26 percent to $300,700,000 in the first half. In
Japan, Tiffany's largest international market, comparable store sales in
local currency rose 12 percent in the quarter and 13 percent in the first
half. Growth was also strong in the Company's other key regions.
Direct Marketing sales rose 19 percent to $30,796,000 in the second quarter
and rose 17 percent to $57,410,000 in the first half, benefiting from
corporate and catalog sales growth as well as e-commerce sales that
commenced in November 1999.
Michael J. Kowalski, President and Chief Executive Officer, said, "Our very
successful performance reflects an increasing awareness among customers who
appreciate Tiffany's range of extraordinary product offerings. Tiffany has a
strong base upon which we can pursue additional growth opportunities in the U.S.
and internationally in the years ahead."
Tiffany & Co. is the internationally renowned jeweler and specialty retailer.
Sales are made primarily through TIFFANY & CO. stores and boutiques 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 Tiffany's Web site, www.tiffany.com, and on its shareholder
information line (800) TIF-0110.
The Company will host a conference call today to review these results at 8:30
a.m. (EST). Interested parties may listen to a Web broadcast by accessing
www.shareholder.com/tiffany or www.vcall.com on the Internet.
# # #
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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
------------------------------------
Patrick B. Dorsey
Senior Vice President,
Date: August 16, 2000 General Counsel and Secretary
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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 July 31, Six months ended July 31,
---------------------------------- ----------------------------------
2000 1999 2000 1999
------------- ------------- -------------- --------------
<S> <C> <C> <C> <C>
Net sales $ 371,977 $ 307,067 $ 715,229 $ 579,344
Cost of sales 151,272 132,030 299,006 256,011
------------- ------------- -------------- --------------
Gross profit 220,705 175,037 416,223 323,333
Selling, general and administrative expenses 153,628 133,084 295,751 251,941
------------- ------------- -------------- --------------
Earnings from operations 67,077 41,953 120,472 71,392
Other expenses, net 1,804 2,331 4,489 3,913
------------- ------------- -------------- --------------
Earnings before income taxes 65,273 39,622 115,983 67,479
Provision for income taxes 26,108 16,641 46,393 28,341
------------- ------------- -------------- --------------
Net earnings $ 39,165 $ 22,981 $ 69,590 $ 39,138
============= ============= ============== ==============
Net earnings per share:
Basic $ 0.27 $ 0.16 $ 0.48 $ 0.28
============= ============= ============== ==============
Diluted $ 0.26 $ 0.16 $ 0.46 $ 0.27
============= ============= ============== ==============
Weighted average number of common shares:
Basic 145,165 142,180 145,132 141,170
Diluted 151,546 148,092 151,689 146,748
</TABLE>
Net earnings per share and the number of shares are adjusted to reflect a July
2000 two-for-one stock split.
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TIFFANY & CO. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited, in thousands)
<TABLE>
<CAPTION>
July 31, January 31, July 31,
2000 2000 1999
------------- -------------- ---------------
ASSETS
<S> <C> <C> <C>
Current assets:
Cash and cash equivalents $ 174,662 $ 216,936 $ 151,044
Accounts receivable, net 100,526 119,356 93,229
Inventories, net 559,675 504,800 536,603
Deferred income taxes 33,131 30,212 27,214
Prepaid expenses and other current assets 33,969 20,357 32,246
------------- -------------- ---------------
Total current assets 901,963 891,661 840,336
Property and equipment, net 339,626 322,400 205,526
Deferred income taxes 5,681 6,235 8,620
Other assets, net 132,938 123,266 132,320
------------- -------------- ---------------
$ 1,380,208 $ 1,343,562 $ 1,186,802
============= ============== ===============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Short-term borrowings $ 28,671 $ 20,646 $ 98,295
Accounts payable and accrued liabilities 181,246 176,101 150,474
Income taxes payable 19,067 53,954 18,119
Merchandise and other customer credits 31,569 30,275 24,174
------------- -------------- ---------------
Total current liabilities 260,553 280,976 291,062
Long-term debt 247,239 249,581 194,845
Postretirement/employment benefit obligations 24,684 23,165 22,435
Other long-term liabilities 34,980 32,764 33,822
Stockholders' equity 812,752 757,076 644,638
------------- -------------- ---------------
$ 1,380,208 $ 1,343,562 $ 1,186,802
============= ============== ===============
</TABLE>
