Tiffany & Co. Q4 Profit Tops Estimates; Worldwide Net Sales Up 4%

(RTTNews) - Tiffany & Co. (TIF) reported fourth-quarter net earnings of $62 million, or $0.50 per diluted share, which were 61% below the prior year's $158 million, or $1.26 per diluted share. The company recorded tax-related charges in the fourth quarter of 2017 and certain impairment charges in last year's fourth quarter. Excluding such charges, net earnings rose 15% to $208 million, or $1.67 per share, from last year's $182 million, or $1.45 per share. On average, 22 analysts polled by Thomson Reuters expected the company to report profit per share of $1.64 for the quarter. Analysts' estimates typically exclude special items.

Fourth-quarter worldwide net sales rose 9% to $1.33 billion, resulting from growth in all regions and across all product categories; comparable store sales rose 3%. On a constant-exchange-rate basis, worldwide net sales rose 6% and comparable store sales were 1% above the prior year. Analysts expected revenue of $1.31 billion for the quarter.

In the full year 2017: excluding charges, net earnings were $516 million, or $4.13 per diluted share, were 10% higher than the prior year's $470 million, or $3.75 per diluted share. Worldwide net sales increased 4% to $4.2 billion, reflecting sales growth in most regions and across most jewelry categories; comparable store sales were equal to the prior year. On a constant-exchange-rate basis that excludes the effect of translating foreign-currency-denominated sales into U.S. dollars, worldwide net sales also increased 4% and comparable store sales were equal to the prior year.

For fiscal 2018, the company's guidance includes: worldwide net sales increasing by a mid-single-digit percentage over the prior year both as reported and on a constant-exchange-rate basis; earnings before income taxes equal to or slightly below the prior year; net earnings increasing to a range of $4.25 - $4.45 per share.