Shoppers’ reluctance to splurge on high-priced jewelry resulted in Tiffany & Co. reporting a 75 percent decline in its fiscal fourth-quarter profit.
Still, enough people bought lower-priced items over the holidays that its earnings beat analysts’ forecasts.
Tiffany said its profit dropped to $31.1 million for the three months ended Jan. 31 from $127.4 million the year before. Sales dropped 20 percent to $841.2 million.
Although competition among jewelers remains intense, Tiffany still plans to maintain its prices to protect its cachet — symbolized by its famous blue box.
Michael J. Kowalski, chairman and chief executive. 2008 compensation: $7.3 million.
Employees: 9,000.
52-week stock high/low: $49.98/$16.70.
Debt/capital percentage (lower is better): 17.3 percent; industry: 20.1 percent.
Revenue growth: -2.7 percent; industry: 0.1 percent.
Net margin (higher is better): 3.7 percent; industry: 0.7 percent.
Return on equity: 14 percent; industry, 8 percent.
Source: www.courier-journal.com/article
