Tiffany today reported its financial results for the full year and fourth quarter, ended January 31, 2017. For the overall year, worldwide net sales declined by 3% and net earnings per diluted share fell by 1%. Still, there was some good news to be had, with $700 million generated in cash flow.
The fourth quarter fared better with net sales rising 1% to $1.2 billion and comparable store sales remaining unchanged from the prior year. On a constant-exchange-rate basis, worldwide net sales rose 2% and comparable store sales were unchanged from the prior year while net earnings were $158 million, or $1.26 per diluted share, compared with $163 million, or $1.28 per diluted share, in the prior year.
One interesting result is that Tiffany’s New York flagship store, located in Trump Tower on Manhattan’s Fifth Avenue, declined 11% in the full year and 7% in the fourth quarter—a direct effect of the chaos that ensued outside the building after the presidential election results and ongoing heightened security.
Michael J. Kowalski, Chairman of the Board and Interim Chief Executive Officer, said in a statement, “Despite macroeconomic and geopolitical challenges in the past year that we believe will continue in 2017, we strongly believe that Tiffany’s strategies are sound and that we have meaningful growth opportunities. Our management team is focused on accelerating the execution of our strategies to deliver extraordinary products, communications and experiences that will delight our customers around the world. Through strong leadership and this accelerated execution, we believe we are well-positioned to deliver attractive total shareholder return over the long-term.”