** charts after guidance **
Tiffany & Co holiday comps -5% ex-FX; lowers FY15 EPS, sees minimal growth in sales and earnings next year, below consensus :
- Worldwide net sales declined 3%, comps declined 5% yoy, all numbers ex/fx
- Worldwide net sales of $961 mln were 6% lower yoy,
Geographic Breakdown
Total sales of $505 mln, declined 7% in the Americas yoy
- Total sales and comparable store sales declined 6% and 9%, total sales of $187 mln were 11% below the prior year in Asia-Pacific
- Total sales increased 12% and comparable store sales rose 10%, total sales rose 9% to $123 mln in Japan
- Total sales rose 4% and comps declined 2% in Europe
- Other sales on a constant-exchange-rate basis declined 16% in total and comparable store sales on that same basis decreased 12%, reported in USD, sales of $19 mln were 20% below prior year
Company Outlook for 2015-2016
Management expects net earnings ending Jan 31, 2016 to decline ~ 10% (compared with its previously-reported forecast of 5%-10% decline) from last year's $4.20 per diluted share, excluding loan impairment charge in the Q215 and debt extinguishment charge in 2014, down to $3.78 vs consensus $3.88
"Management currently believes that the strong dollar and global macro challenges will likely result in minimal growth in net sales and net earnings [consensus EPS +14.8% to $4.34, rev +% to $4.2 bln] as reported in dollars and excluding charges in 2015, for the year, all assumptions and expectations are approximate and may or may not prove valid. Co maintains its forecast to generate at least $500 mln of free cash flow FY16
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