Tiffany’s 2Q15 Earnings Call Notes

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Results pressured by strong dollar

“from an overall perspective second quarter financial results from the top line to the bottom line continued to be significantly pressured by the strong U.S. dollar and worldwide net sales as reported were flat to last year. ”

Lower tourist spending

“higher domestic spending in the Americas largely tied to strengthen statement jewelry sales was offset by lower foreign tourists spending in the U.S. especially in New York and Hawaii, which we attribute primarily to the effect from the strong U.S. dollar.”

Impossible to quantify effect of stock market on sales

“With regard to recent news from China in the same way that it’s not possible to quantify the positive wealth effect from a rising stock market on our sales growth there in the past couple of years. It’s similarly difficult to predict any potential negative effect on sales in magnitude or duration from their recent stock market correction or currency devaluation.”

Net Earnings down 16%

“With regard to recent news from China in the same way that it’s not possible to quantify the positive wealth effect from a rising stock market on our sales growth there in the past couple of years. It’s similarly difficult to predict any potential negative effect on sales in magnitude or duration from their recent stock market correction or currency devaluation.”

Focusing on growing inventories less than sales

“our goal for this year and beyond is to also keep inventory growth below the rate of sales growth by achieving better productivity in our stores as well as in our overall supply chain.’