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$TIF 1Q15 10-Q: Net sales were $962.4MM vs. $1,012.1MM in 1Q14. Gross profit was $569MM vs. $589.5MM in 1Q14. Earnings from operations were $170MM vs. $209.8MM in 1Q14. Net earnings were $104.9MM vs. $125.6MM in 1Q14. Cost of sales was $393.4MM vs. $422.6MM in 1Q14. SG&A expenses were $399MM vs. $379.7MM in 1Q14.
$TIF's BoD has elected Roger Farah as Chairman, effective October 2. Michael J. Kowalski, Chairman since 2002, will remain a director. Mr. Kowalski, Interim CEO since February 2017, will relinquish that title when the newly-appointed CEO, Alessandro Bogliolo, joins the company in October.
Despite its 7th straight quarter decline in same-store sales, $TIF, which is famous for its robin egg blue color box and satin ribbon, managed to report YoY profit of $115MM in the second quarter of 2017, up 9% from $106MM last year. Comp sales growth from Japan decreased to 3% from 13% improvement in Q2 2016. Total sales expanded by 3%.
$COST's diamond ring story - Following $TIF ruling over Costco for selling 2,500 fake "Tiffany" rings, Costco said that it plans to appeal the ruling that it "is a product of multiple errors in pretrial, trial, and post-trial rulings." This legal battle was ongoing since Valentine's Day 2013 and the current settlement charge is expected to be about $19.4MM.
Jewelry retailer $TIF has appointed Alessandro Bogliolo as CEO, effective October 2, 2017. He will also join Tiffany’s BoD. Most recently, he served as CEO of apparel company Diesel SpA. Earlier, Bogliolo served Bulgari SpA in various leadership roles, including COO and EVP.
In Asia Pacific, $TIF's increased total sales was due to higher wholesale sales and the effective new store openings over the year ago period. Additionally, the regional sales growth was mainly driven by increased jewelry unit volumes, with a decline in the avg. price per unit sold.
$TIF stated that regional results included a total sales increase in Asia Pacific contrasting with modest declines in the Americas, Japan and Europe. However, sales in Europe increased on a constant exchange rate basis. In $TIF's largest region, the Americas, total and comp store sales declined in 1Q17, mainly due to lower jewelry unit volume.
$TIF now sees FY17 worldwide net sales rising by a low-single-digit percentage, and diluted EPS improving by a high-single-digit percentage over last year, with capex of $250MM. Tiffany plans 10 store openings, seven relocations and seven closings in the year; and expects to incur interest and other expenses, net of approximately $40MM.
$TIF, the maker of NFL's Vince Lombardi Trophy and NBA's Larry O' Brien Trophy, posted an 8% bump in Asia-Pacific sales of $257MM in 1Q17. Sales in the Americas fell 3% to $392MM and Japan sales slipped 2% to $128MM. Tiffany did not open any company-operated stores but closed three. At April 30, 2017, the jeweler operated 310 stores worldwide.
Worldwide net sales of $TIF rose 1% to $900MM in 1Q17, as the luxury jeweler posted a 7% jump in net earnings of $93MM from last year's $87MM. Earnings improved to $0.74 per diluted share from $0.69 a share, fueled by growth in Asia-Pacific and the wholesale sales bump in diamonds. Comparable store sales in the quarter were 3% below the prior year.
For 2017, $TIF said that it has got strategic initiatives, which include the formation of global procurement group, jewel research design center and optimization of the systems. Going forward, the company expects these initiatives to affect its cost structure in a favorable manner.
With regards to the new CEO search, $TIF expects that it may take time to find the right person with a broad experience. In Feb., Frederic Cumenal stepped down as CEO and Michael Kowalski, Chairman and previous CEO, started to serve as Interim CEO.
In 2017, $TIF is conscious about the economic and geopolitical uncertainties and their potential effects on local and foreign tourists' spending. Half of the company's sales continue to be outside U.S. $TIF expects USD to be stronger on average than the prior year and expects a sizeable headwind in terms of translating non-U.S. sales into dollars.