Despite a dip in earnings in the fourth quarter, Tiffany & Co. reported rising sales and earnings in 2011.
The company’s net sales rose 18 percent to $3.6 billion, and net earnings rose 19 percent to $439 million, in fiscal year 2011.
However, in the fourth quarter, worldwide net sales increased 8 percent to $1.2 billion, but net earnings dipped 2 percent to $178 million.
“Tiffany exceeded the goals that we had set at the start of 2011 for both sales and earnings growth, although we concluded the year with softer-than-expected results,” Michael J. Kowalski, chairman and chief executive officer, said in a statement.
Highlights from Tiffany’s financial statement (for the quarter ended Jan. 31):
- In the Americas region, sales increased 15 percent to $1.8 billion in fiscal 2011 and rose 5 percent to $605 million in the fourth quarter. Comparable store sales increased 13 percent in the year and 3 percent in the fourth quarter. Sales at the New York flagship store increased 20 percent in the year and 2 percent in the fourth quarter. Combined Internet and catalog sales in the Americas rose 6 percent in fiscal 2011 and declined 4 percent in the fourth quarter.
- In the Asia-Pacific region, sales rose 36 percent to $748 million in the full year and increased 19 percent to $225 million in the fourth quarter.
- In Europe, sales increased 17 percent to $421 million in the fiscal year and 3 percent to $142 million in the fourth quarter.
Tiffany also repurchased approximately 2.6 million shares of its common stock in the fiscal year at a total cost of $174 million, or an average cost of $66.23 per share. In the fourth quarter, the company spent $35 million to repurchase approximately 525,000 shares at an average cost of $67.26 per share. At the end of the fiscal year, approximately $218 million was available for future repurchases under the current plan, which expires in January 2013.