Tiffany & Co. Building on Wall Street

TIFFANY REPORTS FULL YEAR 2015 SALES NEGATIVELY AFFECTED BY STRONG US DOLLAR

Tiffany & Co.’s worldwide net sales for the 12 months ending January 31, 2016 rose 2% on a constant-exchange-rate basis due to higher sales in Asia-Pacific, Japan and Europe while comparable store sales were equal to the prior year. Reported in U.S. dollars however, worldwide net sales declined 3% to $4.1 billion. Throughout the year, results were pressured by the strong U.S. dollar, which had a negative effect on the translation of non-U.S. sales into dollars and on foreign tourist spending in the U.S., as well as, to varying degrees, the effects of macro-economic challenges and uncertainties on consumer spending, explains a press release from the company.

In the Americas, on a constant-exchange-rate basis, total sales and comparable store sales in the full year were 2% and 4%, respectively, below the prior year while total and comparable store sales in the fourth quarter declined 6% and 8%, respectively. These declines in both periods reflected lower foreign tourist spending in the U.S., which management attributes to the strong U.S. dollar, as well as varying degrees of softness in sales to U.S. customers.

In the Asia-Pacific region, on a constant-exchange-rate basis, in the full year total sales rose 3% and comparable store sales were unchanged from the prior year while in the fourth quarter total sales declined 3% and comparable store sales declined 8%.

In Japan, on a constant-exchange-rate basis, full year total sales and comparable store sales rose 10% and 5%, respectively, and in the fourth quarter total sales rose 12% and comparable store sales rose 10%. The majority of this sales growth in both periods reflected higher sales to foreign tourists.

In Europe, on a constant-exchange-rate basis, total sales and comparable store sales in the full year rose 12% and 9%, respectively, due to geographically broad-based sales growth that reflected higher spending by local customers and foreign tourists; on that same basis, total sales in the fourth quarter increased 2% and comparable store sales declined 3% due to varying performance across the region, including sales growth in the U.K. and a noteworthy decline in France.

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