Tiffany 3Q15 Earnings Call Notes

Tiffany (TIF) Q3 2015 Results – Earnings Call Transcript

Third quarter results were generally mixed

“in general the third quarter results were mixed. Sales and margins continued to be negatively affected by the strong U.S. dollar and net earnings came in several cents lower than we expected. However, worldwide net sales increased 4% on a constant exchange rate basis despite greater than expected softness in the Americas, reflecting strong growth in Japan and modest growth in Europe and the Asia Pacific regions.”

Substantial decline in tourists in the US

“we once again saw a substantial decline in sales to foreign tourists in varying degrees by nationality with pronounced weakness in New York area as well as in other tourist related markets on the East and West coast of the U.S. and in Hawaii.”

Pleased with China despite headlines

“With China in the news so much regarding their economy stock market and currency, we are pleased and encouraged that our total sales in China increased by a healthy amount in the third quarter despite volatility and sensitivity to headline macro events.”

Foreign tourist spending up in Europe however translated to US dollars third quarter sales in Europe declined

“the euro and pounds weakness against the dollar have stimulated foreign tourist spending in Europe while perhaps also encouraging some Europeans to shop locally rather than abroad. However, when translated into U.S. dollars, total third quarter sales in Europe decreased 2% due to small variations among jewelry categories in unit volume and average price.”