=Tiffany & Co (TIF) reported earnings on Fri 17 March 2017 (b/o)

Tiffany & Co beats by $0.07, reports revs in-line; guides FY18 towards high end of expectations:

• Reports Q4 (Jan) earnings of $1.45 per share, excluding non-recurring items, $0.07 better than the Capital IQ Consensus of $1.38; revenues rose 1.3% year/year to $1.23 bln vs the $1.22 bln Capital IQ Consensus.
• Comparable store sales were unchanged from the prior year. On a constant-exchange-rate basis, worldwide net sales rose 2% and comparable store sales were unchanged from the prior year.
• Reported holiday comps down 2% on Jan 17.
  • In the Americas, total sales declined 5% to $1.8 billion in the full year and 3% in the fourth quarter to $587 million, and comparable store sales declined 6% and 2%, respectively.
  • In the Asia-Pacific region, total sales of $1 billion in the full year were ~equal to the prior year and total sales of $284 million in the fourth quarter were 9% above the prior year, benefitting from the opening of new stores, with comparable store sales declining 9% and 2%, respectively.
  • In Japan, total sales rose 12% to $604 million in the full year and 15% to $185 million in the fourth quarter; comparable store sales increased 16% and 19%, respectively, while wholesale sales declined in both periods.
  • In Europe, total sales of $458 million in the full year and $146 million in the fourth quarter were 10% and 7%, respectively, below the prior year and comparable store sales declined 14% and 9%, respectively.
• Mgmt's FY17 outlook calls for: (i) worldwide net sales increasing over the prior year by a low-single-digit percentage (consensus +1.9%) and by a mid-single-digit percentage on a constant-exchange-rate basis and (ii) net earnings per diluted share increasing by a high-single-digit percentage over 2016's earnings per diluted share of $3.55 and by a mid-single-digit-percentage over 2016's earnings per diluted share (excluding charges) of $3.75 (+5% to $3.94 vs. $3.86 consensus). These expectations are approximations and are based on the Company's plans and assumptions, including: (i) worldwide gross retail square footage increasing 3%, net through 11 store openings, nine relocations and six closings; (ii) operating margin above the prior year entirely due to an expected increase in gross margin, with SG&A expenses increasing slightly faster than sales growth; (iii) interest and other expenses, net of ~$40 million; (iv) an effective income tax rate consistent with the prior year; (v) the U.S. dollar in 2017 stronger overall than other foreign currencies on a year-over-year basis; and (vi) minimal benefit to net earnings per diluted share from share repurchases..