Tiffany 1Q16 Earnings Call Notes

Continuation of softness in sales trends

” Overall, these first quarter results generally represented a continuation of the softness in sales trends that we experienced in the latter part of 2015 and were largely what we expected.”

Americas sales declined 9%

” in the Americas total sales declined 9% and comparable store sales declined 10%. On a constant exchange rate basis, total sales declined 8% in the first quarter and comp store sales declined 9%. We attribute the overall lower sales to softness in domestic customer spending in many U.S. markets as well as lower spending by foreign tourists of many nationalities in New York and other high tourism markets. The total sales decline was due to unit related softness across most jewelry categories.”

Moderated annual forecast

“So in terms of our outlook for the year we believe it is prudent at this point of the year to moderate our annual forecast and call for a mid single-digit decline in diluted EPS in 2016 versus last year’s diluted EPS excluding charges. We do acknowledge some of the specific risks to the guidance for the remainder of the year primarily related to the difficulty in accessing the potential for a slower than expected improvement in U.S. activity, continued substantial softness in Europe and weakness in foreign tourist spending among the Chinese and other nationalities.”