Businessweek

Tiffany & Co., through its subsidiaries, operates as a jeweler and specialty retailer. It also sells timepieces, leather goods, sterling silverware, china, crystal, stationery, fragrances and accessories. The company is engaged in product design, manufacturing, and retailing activities. Segments The company’s segments include Americas, Asia-Pacific, Japan, Europe, and Other. The Americas segment includes sales in TIFFANY & CO. stores in the United States, Canada and Latin America, as well as sales of TIFFANY & CO. products in certain markets through business-to-business, Internet, catalog and wholesale operations; The Asia-Pacific segment includes sales in TIFFANY & CO. stores, as well as sales of TIFFANY & CO. products in certain markets through Internet and wholesale operations; The Japan segment includes sales in TIFFANY & CO. stores, as well as sales of TIFFANY & CO. products through business-to-business, Internet and wholesale operations; The Europe segment includes sales in TIFFANY & CO. stores, as well as sales of TIFFANY & CO. products in certain markets through Internet and wholesale operations; and The Other segment consists of wholesale sales of TIFFANY & CO. merchandise to independent distributors for resale in certain emerging markets (primarily in the Middle East and Russia) and retail sales in five TIFFANY & CO. stores in the United Arab Emirates (U.A.E.). In addition, this segment includes wholesale sales of diamonds obtained through bulk purchases that were subsequently deemed not suitable for the company’s needs. Products The company offers a selection of TIFFANY & CO. brand jewelry. Designs are developed by employees, suppliers, independent designers and independent ‘named’ designers. It also sells timepieces, leather goods, sterling silver goods (other than jewelry), china, crystal, stationery, fragrances and accessories. Merchandise The company produces jewelry in New York, Rhode Island and Kentucky, and silver hollowware in New Jersey. Other subsidiaries of the company process, cuts, and polishes diamonds at facilities outside the U.S. Rough and Polished Diamonds: The company has established diamond processing operations that purchase, sort, cut and/or polish rough diamonds. The company has such operations in Belgium, Botswana, Mauritius, Namibia, South Africa and Vietnam. Operations in Botswana, Namibia and South Africa are conducted through companies in which third parties own minority interests. In Namibia and South Africa, a single third party owns a minority interest while in Botswana, two third parties own minority interests. The company’s operations in Botswana, Namibia and South Africa allow it to access rough diamond allocations reserved for local manufacturers. Watches: In 2007, the company entered into a 20-year license and distribution agreement with the Swatch Group for the manufacture and distribution of TIFFANY & CO. brand watches. Under the agreement, the Swatch Group incorporated a new watchmaking company in Switzerland for the design, engineering, manufacturing, marketing, distribution and service of TIFFANY & CO. brand watches. This watchmaking company is wholly-owned and controlled by the Swatch Group but is authorized by the company to use certain trademarks owned and operates under the TIFFANY & CO. name as Tiffany Watch Co., Ltd. Trademarks Through its subsidiaries, the company has obtained and is the proprietor of trademark registrations for TIFFANY and TIFFANY & CO., as well as the TIFFANY BLUE BOX and the color TIFFANY BLUE for various product categories in the U.S. and in other countries. Seasonality As a jeweler and specialty retailer, the company’s business is seasonal in nature, with the fourth quarter representing at least one-third of annual net sales and a higher percentage of annual net earnings. History Tiffany & Co. was founded in 1837.