0000950123-01-506929.txt : 20011009
0000950123-01-506929.hdr.sgml : 20011009
ACCESSION NUMBER: 0000950123-01-506929
CONFORMED SUBMISSION TYPE: 8-K
PUBLIC DOCUMENT COUNT: 1
CONFORMED PERIOD OF REPORT: 20011003
ITEM INFORMATION: Other events
FILED AS OF DATE: 20011003
FILER:
COMPANY DATA:
COMPANY CONFORMED NAME: TIFFANY & CO
CENTRAL INDEX KEY: 0000098246
STANDARD INDUSTRIAL CLASSIFICATION: RETAIL-JEWELRY STORES [5944]
IRS NUMBER: 133228013
STATE OF INCORPORATION: DE
FISCAL YEAR END: 0131
FILING VALUES:
FORM TYPE: 8-K
SEC ACT: 1934 Act
SEC FILE NUMBER: 001-09494
FILM NUMBER: 1751341
BUSINESS ADDRESS:
STREET 1: 727 FIFTH AVE
CITY: NEW YORK
STATE: NY
ZIP: 10022
BUSINESS PHONE: 2122305317
MAIL ADDRESS:
STREET 1: 727 FIFTH AVENUE
CITY: NEW YORK
STATE: NY
ZIP: 10022
8-K
1
y53734e8-k.txt
TIFFANY & CO.
1
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
-----------------------
FORM 8-K
CURRENT REPORT
-----------------------
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): October 3, 2001
TIFFANY & CO.
(Exact name of Registrant as specified in its charter)
Delaware 1-9494 13-3228013
(State or other jurisdiction (Commission File Number) (I.R.S. Employer
of 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
2
Item 5. Other Events.
On October 3, 2001, Registrant issued the following press release providing
updated earnings guidance for the remainder of the year and information
concerning its stock repurchase program.
NEW YORK, October 3, 2001 - Tiffany & Co. (NYSE-TIF) announced that it is
experiencing lower-than-expected sales in its third quarter ending October 31.
Restrained customer spending due to a continuation of weak and uncertain
economic conditions has been intensified by a decline in store traffic since
September 11. Therefore, the company is revising its previous earnings guidance
for the remainder of the year.
Net sales are expected to decline approximately 10 percent in the third quarter,
primarily due to lower sales in Tiffany's U.S. Retail channel of distribution.
Comparable U.S. store sales declined 19 percent in the August-September period,
which includes a 36 percent decline since September 11. In that two-month
period, U.S. sales declined 30 percent in Tiffany's New York flagship store
(which accounted for 12% of total company sales in 2000) and 15 percent in
comparable branch stores. In addition to declines in average transaction
amounts, store traffic declined in U.S. stores among local residents as well as
foreign visitors. International Retail sales in the two-month period were also
below expectations but to a lesser extent. In local currencies, comparable store
sales in Japan increased in the mid single digits, while sales in other
Asia-Pacific markets remained weak and sales declined in Europe. In Tiffany's
Direct Marketing channel, spending by businesses was lower while Internet sales
were substantially higher.
Michael J. Kowalski, president and chief executive officer, said, "In making
this announcement, we are attempting to reduce investors' speculation about how
our business may perform in the coming months. Weak economic conditions in the
U.S. have affected our business since last year's fourth quarter and comparisons
to the prior year were made more difficult by robust conditions in the first
three quarters of 2000."
3
Mr. Kowalski added, "While comparable U.S. store sales declined 36 percent since
September 11, they declined 19 percent in the final week of September with
improving store traffic in many regions. We assume that the sales environment
will continue to be challenging in the remainder of the third quarter. Because
we will face an easier year-over-year comparison in the U.S., we expect to see
net sales almost equal to the prior year with a low-double-digit comparable U.S.
store sales decline in the fourth quarter. We also expect to benefit from higher
gross margins tied to anticipated shifts in sales mix as well as prudent expense
control. On that basis, we now expect earnings in the range of 12-15 cents per
diluted share in the third quarter (versus 24 cents in 2000) and 49-56 cents per
diluted share in the fourth quarter (versus 56 cents in 2000). This would put
2001 earnings in a range of $1.05-$1.15 per diluted share (versus $1.26 in
2000). In addition, our very preliminary expectation calls for modest earnings
growth for full year 2002."
He concluded, "Tiffany's strategies have proven to be very successful over the
long term and we fully intend to maintain our initiatives in store expansion,
merchandising and marketing. Supported by a strong balance sheet, we are
determined to continue providing a superior shopping experience for our
customers while further building long-term value for our shareholders."
Under its authorized program, in the quarter-to-date the Company has repurchased
and retired 1,250,000 shares of its Common Stock at an average cost of $22.39
per share. Approximately $61 million remains available for future repurchases in
the program that expires in 2003.
The Company plans to report its third quarter earnings on November 14 and will
conduct a conference call that day at 8:30 a.m. (EST).
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 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.
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 2000 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.
# # #
4
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, Secretary and
General Counsel
Date: October 3, 2001