Tiffany & Co. Annual Report

Page 1


Contents

1

Introduction Company Profile

3 4

2

Business Risk Factors Properties Legal Proceedings Submission of Matters to a Vote of Security Holders

6 20 22 24 26

3

Shareholders Information Financial Highlights Unresolved Staff Comments

28 29 30

4

Purchases for Equity Securities Selected Financial Data Analysis of Financial Condition and Results of Operations Quantitative and Qualitative Disclosures about Market Risk

34 40 52 58

5

Financial Statement and Supplementary Data Accounting and Financial Disclosure Controls and Procedures Other Information

62 66 70 76


6

Directors and Executive Officers and Corporate Governance Executive Compensation Related Stockholder Matters Certain Relationships and Related Transactions

92 101 112 124

7

Exibitions and Financial Statement Schedules Principle Accountant Fees and Services

148 152

8

Stockholders Who Own at Least Five Percent of the Company Directors Nominee and Executive Officers Executive Officers and Greater-Than-Ten-Percent Beneficial Ownership Reporting Requirements

170 186 190 202

9

Matters to be Voted On at the 2008 Annual Meeting How to Vote your Shares How to Revoke your Proxy The Number of Vote that You Have What a Quorum is

210 214 216 218 219


Shareholder Information

T iffany & Co. is a holding company that operates through its subsidiary companies (“Company”). The Company’s principal subsidiary, Tiffany and Company, is a jeweler and specialty retailer, whose merchandise offerings include an extensive selection of jewelry (83% of net sales in fiscal 2006 ), as well as timepieces, sterling silverware, china, crystal, stationery, fragrances and accessories. Through Tiffany and Company and other subsidiaries, the Company is engaged in product design, manufacturing and retailing activities. Tiffany was founded in 1837 when Charles Lewis Tiffany opened a store in downtown Manhattan. Today, more than 150 TIFFANY & CO. stores and boutiques serve customers in U.S. and international markets. The Company’s key growth strategies are: to selectively expand its channels of distribution in important markets around the world without compromising the long-term value of the TIFFANY & CO. trademark; to increase sales in existing stores by developing new products; to increase its control over product supply and achieve improved profit margins through direct diamond sourcing and internal jewelry manufacturing; to enhance customer awareness through marketing and public relations programs; and to provide customer service that ensures a superior shopping experience.


Financial Highlights

Net Sales (in millions)

Cash Dividents Paid per Share

Net Earning per Deluted Share

$0.52 $2939

$0.23

$2.20

$0.38

$2561

$0.30

$2313 $1.80

$2128

$0.19

$1.75

$1929 $2.05 $1.45

2003 2004 2005 2006 2007

2003 2004 2005 2006 2007

2003 2004 2005 2006 2007


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