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Tiffany & Co.

Tiffany & Co. Kate Reigle November 3, 2011. About the Company. H olding company Product design, manufacturing and retailing activities. P rincipal subsidiary: Tiffany and Company J eweler and specialty retailer (91 % of net sales in fiscal 2010 )

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Tiffany & Co.

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  1. Tiffany & Co. Kate Reigle November 3, 2011

  2. About the Company • Holding company • Product design, manufacturing and retailing activities. • Principal subsidiary: Tiffany and Company • Jeweler and specialty retailer • (91% of net sales in fiscal 2010) • Timepieces, sterling silverware, china, crystal, stationery, fragrances and accessories. • Founded in 1837 in downtown Manhattan. • 230 TIFFANY & CO. stores and boutiques around the world.

  3. Key Growth Strategies • Selectively expand its channels of distribution in important markets around the world without compromising the long-term value of the TIFFANY & CO. trademark • Increase sales in existing stores by developing new products • Increase its control over product supply and achieve improved profit margins through direct diamond sourcing and internal jewelry manufacturing • Enhance customer awareness through marketing and public relations programs • Provide customer service that ensures a superior shopping experience.

  4. Strengths • 99 Composite Rating is the best among the 12 stocks Retail/Wholesale-Jewelry Group • Established brand name and reputation • Continuously expanding

  5. Weaknesses • Knock-offs are becoming more prevalent throughout the recession • Less disposable income

  6. Opportunities • ¾ Biggest competitors are all privately held • Harry Winston Inc. • Moët Hennessy Louis Vuitton • CompagnieFinancièreRichemont • Cartier jewelry, Piaget and Baume & Mercier watches, Alfred Dunhill leather goods, and Montblancpens • Signet Jewelers is Public • Expanding into Eastern Europe • Prague, luxury strip • Global net sales have grown by 25% last quarter

  7. Threats • Another recession/depression • Competitors going public • Failure overseas due to downfall of European economy

  8. Financial News • Sales growth has accelerated, hitting 30% last quarter. • Earnings growth also picked up at 56% last quarter. • Tiffany is scheduled to release its latest quarterly report Nov. 29. • Analysts see earnings climbing 27% in fiscal 2012, which ends in Jan. • Predict a gain of just 13% in fiscal 2013. • Dividends were increased 16% in May 2011

  9. Checklist • Meets 6/10 criteria • Does not meet a criteria under Efficiency Ratios

  10. YTD Chart http://finance.yahoo.com

  11. Recommendation • Morningstar • Fair Value: $50.00 • Consider Buy: $35.00 • Consider Sell: $67.50 • Reuters • Buy :8 • Hold: 9 • Sell: 1 • Buy… but not right now. • Set a price point~ $70.00 • Amount of shares is up for discussion depending on other presentations

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