Tiffany 1Q15 Earnings Call Notes

Worldwide sales declined 5% which was better than expected

“Okay. Starting with the first quarter overview, while, results were admittedly far from robust, they did exceed our expectations and we were pleased with continued progress in executing our key store, product and marketing-related initiatives.

Net worldwide sales declined 5% in the first quarter, which was better than the 10% decline we had expected, due to strong performance in Europe and a smaller than anticipated year-over-year decline in Japan. On a constant exchange rate basis excluding the translation effect of the strong U.S. dollar, worldwide net sales increased 1%.”

Regional sales varied widely

“Regional total sales performance again on a constant exchange rate basis ranged from a 21% increase in Europe, benefiting from strong foreign tourist and local customers spending there to an 18% decline in Japan after a surge in spending there in last year’s first quarter.”

weak US sales growth due to tourist spend

“This minimal sales growth in the Americas reflected an increase in domestic spending, which was mostly offset by lower foreign tourist spending in the U.S., especially in New York, which we attribute to the strength of the U.S. dollar. Elsewhere in the Americas we achieved healthy sales growth in Canada and Latin America on a constant exchange rate basis.”

Weaker yen has affected tourist spending, but my have boosted domestic japanese spend

“We believe such a substantial weakening of the yen has affected spending by Japanese tourists when they travel but might be supporting some local spending in Japan.”

Fashion jewelry led by gold

” fashion jewelry was a strong performer in the quarter. The strength in fashion continued to be led by gold jewelry designs.’

Continued weakness in silver

“we continue to experience weakness in silver jewelry sales before $500. We are focused on addressing this issue over the balance of the year through product development and advertising targeted at what we call our little luxuries.”