8-K 1 0001.txt TIFFANY & CO. : FORM 8-K SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ----------------------- FORM 8-K CURRENT REPORT ----------------------- Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report (Date of earliest event reported): August 16, 2000 TIFFANY & CO. (Exact name of Registrant as specified in its charter) Delaware 1-9494 13-3228013 (State or other jurisdiction (Commission (I.R.S. Employer of incorporation) File Number) Identification Number) 727 Fifth Avenue, New York, New York 10022 (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code: (212) 755-8000 Item 5. Other Events. On August 16, 2000, Registrant issued the following press release announcing its sales and earnings for the three-month period ended July 31, 2000: NEW YORK, August 16, 2000 - Tiffany & Co. (NYSE-TIF) reported that its worldwide sales rose 21 percent in the second quarter and, combined with higher margins, net earnings rose 70 percent. Strong growth was achieved in all key markets, highlighted by comparable store sales growth of 19 percent in the U.S. and 12 percent in local currency in Japan. In the second quarter ended July 31, 2000, net sales of $371,977,000 were 21 percent above 1999's second quarter of $307,067,000. Net earnings rose 70 percent to $39,165,000, or 26 cents per diluted share, compared with $22,981,000, or 16 cents per diluted share, in the prior year. In the six-month period (first half) ended July 31, 2000, net sales rose 23 percent to $715,229,000, compared with $579,344,000 in 1999's first half. Net earnings increased 78 percent to $69,590,000, or 46 cents per diluted share, versus $39,138,000, or 27 cents per diluted share, a year ago. Net earnings per share figures are adjusted to reflect the Company's two-for-one stock split in July 2000. U.S. Retail sales rose 18 percent to $187,927,000 in the second quarter and increased 23 percent to $357,119,000 in the first half, which includes the effect of Tiffany's discontinuation of U.S. wholesale trade sales in January 2000. Comparable store sales rose 19 percent in the second quarter and 23 percent in the first half due to solid growth throughout the U.S., and results in four new stores were strong. International Retail sales increased 26 percent to $153,254,000 in the second quarter and rose 26 percent to $300,700,000 in the first half. In Japan, Tiffany's largest international market, comparable store sales in local currency rose 12 percent in the quarter and 13 percent in the first half. Growth was also strong in the Company's other key regions. Direct Marketing sales rose 19 percent to $30,796,000 in the second quarter and rose 17 percent to $57,410,000 in the first half, benefiting from corporate and catalog sales growth as well as e-commerce sales that commenced in November 1999. Michael J. Kowalski, President and Chief Executive Officer, said, "Our very successful performance reflects an increasing awareness among customers who appreciate Tiffany's range of extraordinary product offerings. Tiffany has a strong base upon which we can pursue additional growth opportunities in the U.S. and internationally in the years ahead." Tiffany & Co. is the internationally renowned jeweler and specialty retailer. Sales are made primarily through TIFFANY & CO. stores and boutiques in the Americas, Asia-Pacific, Europe and the Middle East. Direct Marketing includes Tiffany's corporate division, catalog and Internet sales. Additional information can be found on Tiffany's Web site, www.tiffany.com, and on its shareholder information line (800) TIF-0110. The Company will host a conference call today to review these results at 8:30 a.m. (EST). Interested parties may listen to a Web broadcast by accessing www.shareholder.com/tiffany or www.vcall.com on the Internet. # # # SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. TIFFANY & CO. BY: /s/ Patrick B. Dorsey ------------------------------------ Patrick B. Dorsey Senior Vice President, Date: August 16, 2000 General Counsel and Secretary TIFFANY & CO. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS (Unaudited, in thousands, except per share amounts)
Three months ended July 31, Six months ended July 31, ---------------------------------- ---------------------------------- 2000 1999 2000 1999 ------------- ------------- -------------- -------------- Net sales $ 371,977 $ 307,067 $ 715,229 $ 579,344 Cost of sales 151,272 132,030 299,006 256,011 ------------- ------------- -------------- -------------- Gross profit 220,705 175,037 416,223 323,333 Selling, general and administrative expenses 153,628 133,084 295,751 251,941 ------------- ------------- -------------- -------------- Earnings from operations 67,077 41,953 120,472 71,392 Other expenses, net 1,804 2,331 4,489 3,913 ------------- ------------- -------------- -------------- Earnings before income taxes 65,273 39,622 115,983 67,479 Provision for income taxes 26,108 16,641 46,393 28,341 ------------- ------------- -------------- -------------- Net earnings $ 39,165 $ 22,981 $ 69,590 $ 39,138 ============= ============= ============== ============== Net earnings per share: Basic $ 0.27 $ 0.16 $ 0.48 $ 0.28 ============= ============= ============== ============== Diluted $ 0.26 $ 0.16 $ 0.46 $ 0.27 ============= ============= ============== ============== Weighted average number of common shares: Basic 145,165 142,180 145,132 141,170 Diluted 151,546 148,092 151,689 146,748
Net earnings per share and the number of shares are adjusted to reflect a July 2000 two-for-one stock split. TIFFANY & CO. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited, in thousands)
July 31, January 31, July 31, 2000 2000 1999 ------------- -------------- --------------- ASSETS Current assets: Cash and cash equivalents $ 174,662 $ 216,936 $ 151,044 Accounts receivable, net 100,526 119,356 93,229 Inventories, net 559,675 504,800 536,603 Deferred income taxes 33,131 30,212 27,214 Prepaid expenses and other current assets 33,969 20,357 32,246 ------------- -------------- --------------- Total current assets 901,963 891,661 840,336 Property and equipment, net 339,626 322,400 205,526 Deferred income taxes 5,681 6,235 8,620 Other assets, net 132,938 123,266 132,320 ------------- -------------- --------------- $ 1,380,208 $ 1,343,562 $ 1,186,802 ============= ============== =============== LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Short-term borrowings $ 28,671 $ 20,646 $ 98,295 Accounts payable and accrued liabilities 181,246 176,101 150,474 Income taxes payable 19,067 53,954 18,119 Merchandise and other customer credits 31,569 30,275 24,174 ------------- -------------- --------------- Total current liabilities 260,553 280,976 291,062 Long-term debt 247,239 249,581 194,845 Postretirement/employment benefit obligations 24,684 23,165 22,435 Other long-term liabilities 34,980 32,764 33,822 Stockholders' equity 812,752 757,076 644,638 ------------- -------------- --------------- $ 1,380,208 $ 1,343,562 $ 1,186,802 ============= ============== ===============