Reports Q2 $1.17 v $1.00e, Rev $1.08B v $1.04Be
- Guides Q3 Net earnings and EPS to be lower y/y
- Raises FY18 adj EPS (ex charges) $4.65-4.80 v $4.69e ; Rev "" %., SSS mid to high single digits (prior FY18 adj EPS (ex charges) $4.50-4.70; Rev high-single-digit %)
- Affirms FY18 Capex $280M; Cuts FCF 'at least' $300M; Net cash $600M (prior FY18 Capex $280M; FCF $400M; Net cash $700M)
- Affirms FY18 worldwide gross retail square footage +2%, 8 store openings,2# closings and 15 relocations (prior FY18 worldwide gross retail square footage +2%, 8 store openings, 2 closings and 15 relocations)
- operating margin below the prior year as a result of significant SG&A expense growth
- Gross margin 64.0% v 62.5% y/y
- July Net inventories +8% y/y
Constant-Exchange rate SSS
- Worldwide SSS +8%
- Americas SSS +8%
- Japan SSS +9%
- Asia-Pacific SSS +12%
- Europe SSS -1%
Exec: While in the early stages of addressing our six key strategic priorities, we are pleased with initial customer reactions to our new communication, product and in-store initiatives. The launch of PAPER FLOWERS, a floral collection in platinum and diamonds, is moving toward full global distribution and we believe our evolved brand message is gaining momentum. Our activities in these areas will further accelerate in the remainder of the year with special focus on product personalization, high jewelry, a whimsical holiday campaign and the unveiling in North America of TIFFANY TRUE, an innovative diamond ring concept.”