Tiffany Reports Revenue Drop for 2008

Tiffany & Co. (New York) reported net sales of $2.86 billion in 2008, a 3 percent decline from a year earlier, and full year net earnings of $220 million, down from $323.5 million. In addition, the high-end jeweler incurred several one-time charges, including pre-tax charges of $97.8 million from an early retirement program and other staffing reductions, and $7.5 million related to the previously announced closing of its Iridesse stores.

Michael Kowalski, chairman and chief executive officer, said those steps mean the company “has taken appropriate measures to adjust our cost structure for this environment.” As a result, he said Tiffany will “pursue initiatives to sustain customer enthusiasm and increase our market share, including selected new store openings (13 in 2009), new product introductions and targeted marketing communications.”

As of Jan. 31, Tiffany operated 206 stores and boutiques (86 in the Americas, 96 in Asia-Pacific and 24 in Europe), versus 184 locations a year earlier (80 in the Americas, 87 in Asia-Pacific and 17 in Europe).