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TIFFANY REPORTS NET SALES AND E.P.S. GROWTH IN ITS FOURTH QUARTER AND 2006 FULL YEAR

New York, N.Y., March 26, 2007 – Tiffany & Co. (NYSE: TIF) today reported results for its fourth quarter and fiscal year ended January 31, 2007.

Net sales in the fiscal year rose 11%, due to geographically broad-based growth in the U.S. and international markets. Earnings from operations rose 9% and net earnings were $1.80 per diluted share.

In the fourth quarter, net sales increased 15% to $986,354,000. On a constant-exchange-rate basis which excludes the effect of translating foreign-currency-denominated sales into U.S. dollars (see attached "Non-GAAP Measures" schedule), net sales rose 14% and worldwide comparable store sales rose 8%.

Net earnings of $140,499,000 in the fourth quarter were approximately equal to 2005. Net earnings per diluted share increased to $1.02 from $0.97 due to fewer shares outstanding. Net earnings in the quarter and fiscal year included an impairment charge of $0.05 per diluted share related to Little Switzerland Inc. Earnings before income taxes increased 11%. Net earnings in the fourth quarter of 2005 included a tax benefit of $0.10 per diluted share tied to the repatriation provisions of the American Jobs Creation Act of 2004 ("AJCA").

In fiscal 2006, net sales rose 11% to $2,648,321,000. On a constant-exchange-rate basis net sales increased 11% and worldwide comparable store sales rose 6%.

Net earnings of $253,927,000 in fiscal 2006 were approximately equal to 2005. Net earnings per diluted share rose to $1.80 from $1.75 due to fewer shares outstanding. Earnings before income taxes rose 10% in the fiscal year. 2005 included a tax benefit of $0.16 per diluted share related to the AJCA.

Michael J. Kowalski, chairman and chief executive officer, said, "Tiffany continued to pursue important strategic initiatives in 2006 and achieved the earnings per share expectation we set at the start of the year. We were especially encouraged with customers' response to our new stores and to the wide range of new products we introduced in 2006."

Sales by channel of distribution were as follows:

Other financial highlights were as follows:

2007 Outlook

Mr. Kowalski said, "We concluded 2006 with strong sales growth, giving us every reason to believe that Tiffany remains well-positioned to achieve solid sales and earnings growth in 2007 and beyond. Our objectives for 2007 include: net sales growth of 11-12%; a high-single-digit percentage increase in U.S. and international comparable store sales (on a constant-exchange-rate basis); accelerating the pace of new store openings – we expect to add 17 Company-operated TIFFANY & CO. stores and boutiques in 2007, a 10% increase; a one-half point increase in operating margin largely through a higher gross margin; other expenses, net of approximately $21-23 million; an effective tax rate of approximately 38%; increasing earnings per diluted share by 15%; a high-single-digit percentage increase in net inventories; and capital expenditures of approximately $180 million."

First Quarter Update:

"We are now almost two months into the first quarter, and note that total worldwide net sales are tracking slightly above our growth expectations; at the same time, we are seeing a greater-than-expected shift in sales mix toward higher-end, lower-margin diamond jewelry. Given all that, we believe that earnings are currently on-track to achieve our expectation for the first quarter."

Today's Conference Call

The Company will host a conference call today at 8:30 a.m. (EST) to review these results and its outlook. Investors may listen to the call at www.tiffany.com (click on "About Tiffany," "Shareholder Information," "Conference Call") and www.streetevents.com.

Next Scheduled Announcement

The Company intends to report its first quarter results on May 31, 2007 with a conference call at 8:30 a.m. (EST) that day, to be broadcast at www.tiffany.com and www.streetevents.com. To receive future notifications of conference calls and news release alerts, please register at www.tiffany.com (click on "About Tiffany," "Shareholder Information," "Calendar of Events" and "News by E-Mail").

Company Description

Tiffany & Co. operates jewelry and specialty retail stores and manufactures products through its subsidiary corporations. Its principal subsidiary is Tiffany and Company. The Company operates TIFFANY & CO. retail stores and boutiques in the Americas, Asia-Pacific and Europe and engages in direct selling through Internet, catalog and business gift operations. Other operations include consolidated results from ventures operated under trademarks or tradenames other than TIFFANY & CO. For additional information, please visit www.tiffany.com or call our shareholder information line at 800-TIF-0110.

This document contains certain "forward-looking" statements concerning the Company's objectives and expectations with respect to sales, store openings, gross margin, expenses, earnings, capital expenditures and inventories. Actual results might differ materially from those projected in the forward-looking statements. Information concerning risk factors that could cause actual results to differ materially is set forth in the Company's 2005 Annual Report on Form 10-K and in other reports filed with the Securities and Exchange Commission. The Company undertakes no obligation to update or revise any forward-looking statements to reflect subsequent events or circumstances.

Condensed Consolidated Statements Of Earnings

Condensed Consolidated Balance Sheets

Non-GAAP Measures

Contacts:
James N. Fernandez
(212) 230-5315

Mark L. Aaron
(212) 230-5301

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