Stock Price

Tiffany & Co.'s stock price is now at $61 which is relatively higher than earlier in the semester when it was in the $40 range!

Strong Culture

Tiffany & Co. has a very strong culture....there is a dominating presence of certain deeply rooted values and operating approaches that "regulate" the conduct of the company's business and the climate of its workplace.  The company emphasizes social responsibility and participates in many events to help the environment, promote social responsibility, and energy conservation.  They have very high standards and demonstrate a strong culture by holding these standards high.

Outsourcing.....

The majority of the gold and silver used in Tiffany & Co. jewelry workshops is obtained from a single U.S. mine that meets high standards of social and environmental responsibility.  Once mined, these precious metals are processed in a fabrication plant dedicated to responsibly sourced materials.  The precious metals are transferred to Tiffany & Co.'s workshops or those of their manufacturing partners. 

Tiffany & Co., to ensure the integrity of their supply chain, created Laurelton Diamonds, a wholly owned subsidiary that procures rough diamonds and manages their worldwide supply chain that sources, cuts, polishes and supplies finished stones to Tiffany. 

Rather than outsourcing, Tiffany has integrated into their supply chain.  This creates a strong position for Tiffany & Co. because they do not have to depend upon suppliers for their diamond and precious metals that they need for production.

The Role of the Board in Corporate Governance

The Board plays several important roles in the governance of the Company, as set out in the Company's Corporate Governance Principles. The responsibilities of the Board include:

• Management succession;
• Review and approval of the annual operating plan prepared by management;
• Monitoring of performance in comparison to the operating plan;
• Review and approval of the Company's five-year strategic plan prepared by management;
• Consideration of topics of relevance to the Company's ability to carry out its strategic plan;
• Review and approval of a delegation of authority by which management carries out the day-to-day operations of the Company and its subsidiaries;
• Review of the Company's investor relations program;
• Review of the Company's schedule of insurance coverage; and
• Review and approval of significant actions by the Company.

Non-management directors meet regularly in executive session without management participation. This encourages open discussion. At those meetings, Charles K. Marquis, Chairman of the Nominating/Corporate Governance Committee, presides. In addition, at least once per year the independent directors meet separately in executive session.

Decision Making Structure

As far as decision making is concerned, Tiffany & Co. operates under a Board of Directors that has nine members.  They must oversee the Company's management regarding executive decisions concerning executive officers/compensation, audit committees, etc.  When it comes to the day-to-day operations of the Company, the management makes those decisions.  Each operating store has a store manager that oversees the employees for that retail store.  Corporate Headquarters, located in New York, is the location of where the executive officers conduct business and have their offices.

Tiffany & Co. Beats Analysts Forecasts....

Luxury jewelry retailer Tiffany & Co. posted first quarter earnings this year that substantially beat analysts' estimates.  Operational earnings "more than doubled to 48 cents a share" while analysts expected the company to make only 37 cents a share.  Tiffany's stock price moved 8.7 percent higher on the news.

The largest category of sales increase was for items priced above $50,000, primarily engagement and celebration rings.  However, overall sales were robust with U.S. stores posting a 13 percent increase over the previous year.  Tiffany now expects earnings per share to fall between $2.55 and $2.60 for the year.  A previous consensus forecast from 20 analysts expected the company to post earnings of $2.50 per share.

Tiffany & Co. Introduces the 2010-2011 Blue Book Collection

On October 23, 2010 - Tiffany & Co. celebrated its great heritage as a premier jeweler and diamond authority with the 2010-2011 Blue Book Collection, the jeweler's annual presentation of the world's most spectacular diamond and gemstone jewels.

Advertising

Tiffany & Company is currently engaging in heavily advertising their products in order to create demand and stimulate sales because of the upcoming holiday season.  During this time of year, Tiffany & Co. incurs higher marketing and advertising cost than it does during any other time of the year.  In fact, their fiscal year end is not a typical December 31 year end.  Because their sales are so high during the holiday season and the early part of the year (January, February) it has different year end than your normal calendar year end.

Operations in China...

Tiffany & Co.'s operating segments are as follows:  the Americas region (52% of fiscal 2009 sales) includes sales transacted in Tiffany & Co. stores in the United States, Canada, Mexico, and Brazil, as well as sales of Tiffany & Co. products in certain of those markets through Internet, catalog, business-to-business and wholesale operations; the Asia-Pacific regions (35% of fiscal 2009 sales) consists of sales transacted in Tiffany & Co. locations in Austrailia, China, Hong Kong, Japan, Korea, Macau, Malaysia, Singapore and Taiwan, as well as sales of Tiffany & Co. products in certain of those markets through internet, business-to-business and wholesale operations; and Europe (12% of fiscal 2009 sales) consists of sales transacted in Tiffany & Co. stores in Austria, Belgium, France, Germany, Ireland, Italy, The Netherlands, Spain, Switzerland, and the United Kingdom, as well as sales of Tiffany & Co. products in certain of those market through Internet, business-to-business and wholesale operations.

Outsourcing and Vertical Integration

Tiffany & Co. is a very unique entity, offering luxurious jewelry and items.  Therefore, it must outsource certain things by specialists, such as appraisers on gold, silver, gemstones, diamonds, etc.  It must also obtain diamond extractors in order to get the inputs needed for it's products.  This is also the case with silver, gold, and other precious metals that Tiffany uses in it's jewelry.

Tiffany & Co. has expanded into some vertical integration by opening up it's own stores to sell it's items.  However, Tiffany & Co. could expand to more retail stores if they are upscale retailers.  Tiffany & Co.'s products are too high value and luxurious to sell at typical retail stores such as Dillards, J.C. Penney, Belk, etc.  The typical shopper in the common retail stores is not one who will purchase Tiffany & Co. jewelry.  Therefore, most of Tiffany & Co.'s sales are online, or in it's specialty boutiques.

A focused differentiation strategy...

A focused strategy keyed to differentiation aims at securing a competitive advantage with a product offering carefully designed to appeal to the unique preferences and needs of a narrow, well-defined group of buyers (as distinguished from a broad differentiation strategy aimed at many buyer groups and market segments).  Successful use of a focused differentiation strategy depends on the existence of a buyer segment that is looking for special product attributes or seller capabilities and on a firm's ability to stand apart from rivals competing in the same target market niche.

Tiffany & Co. employs successful differentiation-based focused strategies targeted at upscale buyers wanting products (high value jewelry) with world-class attributes.

Because Tiffany & Co. is known for it's reputation and strong brand name, it can charge premium prices for it's high valued jewelry to only a specific group of customers.  Only upscale buyers can purchase Tiffany & Co. jewelry because it is so expensive and is a luxury item.

Strengths and Weaknesses, Opportunities and Threats

Tiffany & Co. has a major strength of it's brand name.  It is known all over the world and has a very reputable name.  It has a reputation of being known for luxurious jewelry.  This brand name is it's biggest internal strength and creates loyal customers.

Tiffany & Co.'s major external threat is the economy.  When the economy takes a downturn, Tiffany & Co. is hit harder because it is a luxury good.  Therefore, when people have to cut their spending or their budgets, this is one of the first things that people will go without simply because they do not need it.  It is not a necessity.

Mission Statement

Tiffany & Co. seeks to enrich the lives of its customers by creating enduring objects of extraordinary beauty that will be cherished for generations. 

Their mission is to be recognized as the world's most respected and successful designer, manufacturer, and marketer of the finest jewelry, timepieces, selected accessories and tabletop products.  Success in achieving their overall mission is defined in terms of specific product, service and stakeholder missions.

Stock Price

The stock price is $45.56 this week which has slowly climbed since the last two weeks. 

Tiffany & Co - Fighting External Threats

Tiffany & Co. remains to be doing well in sales and their stock price went up and closed today at $43.87.  They are in a rather specific market as far as consumers who purchase their product are concerned.  This is not a product with close substitutes.  They tend to sell to high income individuals.  Those individuals are not normally "hurt" by hard economic times, and therefore, Tiffany & Co.'s sales are not hurt either.  They continue to develop new products in order to remain competitive and sell their products on the market.

Tiffany's Headquarters

The Company's headquarters are located at 727 Fifth Avenue, New York, NY 10022.  The building, housing its flagship store at that address, was constructed in 1940.  Approximately 42,000 square feet of this 124,000 square foot building, are devoted to retail selling purposes, with the balance devoted to administrative offices, certain product services, jewelry manufacturing and storage.

Tiffany and Co's fiscal year end is January 31.

In the year ended January 31, 2010, the New York flagship store represented approximately 9% of the total Company net sales.

Stock Prices remains the same...

Tiffany & Co.'s stock is currently trading at $42.50 per share.  The stock is remaining stable right now....it is not fluctuating in price and staying constant.  I don't think I have seen very many stocks do that on the market.

Stock Price 9/8/10

Tiffany & Co's stock is trading at $42.50 per share as of today, Sep. 8, 2010.

Potential Threats - external environment

Tiffany & Co. sells products that are considered a luxury good to the typical consumer.  Since these goods are not considered necessary, their product sales will tend to suffer in a time of economic decline.  This is a potential threat due to the current state of our economy.  Most people will tend to budget their money during hard economic times and purchase goods that are necessary for survivial.  Thus, purchases such as jewelry will be postponed to a later time.

About the company.....

Tiffany & 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 (90% of net sales in fiscal 2009), as well as timepieces, sterling silverware, china, crystal, stationery, fragrances and accessories.  Through Tiffany and Company and other subsidiaries, the Company is engaged in public design, manufacturing and retailing activities. 

Tiffany was founded in 1837 when Charles Lewis Tiffany opened a store in downtown Manhattan.  Today, more than 200 Tiffany & Co. stores and boutiques serve customers around the world.

Stock Info

Tiffany & Co's ticker symbol is TIF.

Throughout the past year, their stock has traded around $40 a share.  The high for the past year is $52.19.  The low is $34.70.

Tiffany & Co.

Hello!  I created this blog for a graduate class and hope to include very interesting and enticing information for any readers/followers!  I hope you learn more about Tiffany & Co. and their products.

The reason I chose this company was because their products greatly interest me.  The diamond industry is very intriguing, as well as silver, gold and other precious gemstones.  If you haven't ever gone to Tiffany & Co.'s website, you should visit their page to view their amazing jewelry and products they have to offer.  It is http://www.tiffany.com/.

I will be including information on the company's stock price, financial condition, products, and other events going on within the business.  Hope you enjoy!!!