Tiffany’s 4Q14 Earnings Call Notes

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Strong dollar affecting sales to tourists

The strong U.S. dollar had a minimal negative translation effect on the Americas sales but is having an adverse effect on foreign tourists spending in the U.S. especially in New York. And this effect certainly worsened in the later part of 2014.”

Broad based softness geographically across the US

“We attribute the Americas comp decline in the fourth quarter to softness that was broad based geographically across the U.S. and in most product categories except fashion jewelry.”

Softness partially due to lack of newness but also perhaps competitive and macro pressures

“We attribute the softness in the under $500 silver jewelry category to a lack of product newness and marketing focus and perhaps also the competitive and macro pressures on the jewelry purchaser at those price points. So we do have some opportunity to fine tune our approaches to those issues within our control.”

Softening sales in Hong Kong and Macau

“Starting in the third quarter, Tiffany has seen a mark softening in sales results in Hong Kong and we’re also experiencing weakness in Macau. We believe that some tourists may be diverting their travels to other markets or perhaps increasing their spending locally.’