Tiffany & Co. Foresees 2008 10% Increase in Net Sales Worldwide

Tiffany & Co. is expecting a 10 percent minimum increase in worldwide net sales for fiscal 2008, which began February 1, characterized by a high single-digit percentage increase in U.S. retail sales, a mid-teens percentage rise in international retail sales, a mid-single-digit percentage increase in direct marketing sales and a low-single-digit rise in other sales.

The U.S. retail sales increase will reflect a low-single-digit increase in comparable store sales, as well as the planned opening of six stores, while the international results will include a mid-single-digit increase in comparable store sales and the opening of 15-20 stores (the net result with closings).   

Based on these sales assumptions, Tiffany’s is planning for a mid-single-digit percentage increase in net earnings and a low-double-digit increase in diluted earnings per share (reflecting fewer shares outstanding).

Chairman and CEO Michael J. Kowalski commented, “Our U.S. sales results for the month of January were modestly improved from December, and we are seeing ongoing strength in Asia-Pacific outside Japan and in Europe.

“Generally speaking, we are planning our U.S. businesses cautiously for the first half of 2008 while planning for continued healthy international sales growth throughout the year,” he concluded.