Tiffany & Co. is a holding company that operates through its subsidiary companies. The company’s principal subsidiary, Tiffany and Company (Tiffany), is a jeweler and specialty retailer whose principal merchandise offering is jewelry. Through Tiffany and other subsidiaries, the company is engaged in product design, manufacturing and retailing activities.
The company’s principal product category is jewelry, which represented 91% of the company’s net sales in 2011. The company also sells timepieces, sterling silver goods (other than jewelry), china, crystal, stationery, fragrances, personal accessories and leather goods, which represented, in total, 8% of the company’s net sales in 2011. Its remaining 1% of net sales was attributable to wholesale sales of diamonds and earnings received from third-party licensing agreements. For the six months ended 31 July 2011, Tiffany & Co.’s revenues increased 20% to $1.63B. Net income from continuing operations increased 23% to $171.1M. Revenues reflect an increase in sales from United States segment and higher income from Europe segment. Net income also reflects an increase in gross profit margin, a decrease in interest expense & financing costs and a significant rise in other income, net.
Tiffany has its own manufacturing facilities which produce approximately 60% of the merchandise sold by the company, and the rest including almost all non-jewelry items is purchased from third parties. Tiffany produces jewelry and silver goods in Rhode Island, New York, and Kentucky. Silver hollowware offered by the company is made in New Jersey. Other subsidiaries of the company process, cut and polish diamonds at facilities outside the US. Tiffany procures gems and precious metals from several vendors. The company has established diamond-processing operations that purchase, sort, cut and polish rough diamonds for use by Tiffany. The company now has such operations in Belgium, South Africa, Botswana, Namibia, Mauritius and Vietnam.
The company’s shares are traded on The New York Stock Exchange with the symbol TIF. Headquartered in New York, Tiffany has more than 9,000 employees around the world.