Tiffany & Co. Kate Reigle November 3, 2011

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.

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.

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

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

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

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

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 Dividends were increased 16% in May 2011

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

YTD Chart

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