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Tiffany Reports Its Third Quarter Financial Results

New York, N.Y., November 29, 2012 - Tiffany & Co. (NYSE: TIF) today reported that in its third quarter worldwide net sales were $853 million and net earnings were $63 million, or $0.49 per diluted share. Management updated its full year financial outlook.

In the three months ("third quarter") ended October 31, 2012:

In the nine months ("year-to-date") ended October 31, 2012:

Michael J. Kowalski, chairman and chief executive officer, said, "Three months ago, we had anticipated that third quarter results would be affected by continued economic weakness in many markets as well as by challenging comparisons to last year when net sales were up 21% and net earnings had increased 52% excluding nonrecurring items. However, gross margin was weaker than we expected and Tiffany's effective tax rate was higher than we expected. As a result, net earnings were below our expectations."

Net sales highlights were as follows:

Other financial highlights:

Mr. Kowalski added, "We continue to maintain a cautious near-term outlook about global economic conditions. However, we expect to see improving results in this holiday season, partly benefiting from easing year-over-year sales comparisons, but also tied to the success of new TIFFANY & CO. stores we've added this year, new product introductions and more product-focused marketing communications."

Outlook for 2012:
For the year ending January 31, 2013, management expects net earnings of $409-$435 million, or $3.20-$3.40 per diluted share, compared with the previous forecast of $3.55-$3.70 per diluted share. This forecast is based on the following assumptions (which are approximate and may or may not prove valid):

  1. Worldwide net sales (in U.S. dollars) increasing 5-6% versus the previous expectation of 6-7% growth.
  2. Adding a total of 28 (net) Company-operated stores including 13 in the Americas, eight in Asia-Pacific, two in Europe, and commencing operation of five stores in the United Arab Emirates. This includes 25 (net) stores already added in the year-to-date.
  3. Operating margin below the prior year due to a decline in the gross margin.
  4. Interest and other expenses, net of approximately $53-55 million.
  5. An effective income tax rate of approximately 35%.
  6. In addition, management expects net inventories to increase 10% in the full year and capital expenditures of $230 million, both unchanged from the previous forecasts.

Today's Conference Call:
The Company will conduct a conference call today at 8:30 a.m. (Eastern Time) to review actual results and the outlook. Please click on http://investor.tiffany.com ("Events and Presentations").

Next Scheduled Announcement:
The Company expects to report its November-December holiday sales results on Thursday January 10, 2013. To be notified of future announcements, please register at http://investor.tiffany.com ("E-Mail Alerts").

Tiffany & Co. operates jewelry stores and manufactures products through its subsidiary corporations. Its principal subsidiary is Tiffany and Company. The Company operates TIFFANY & CO. retail stores in the Americas, Asia-Pacific, Japan, Europe and the United Arab Emirates, and also engages in direct selling through Internet, catalog and business gift operations. For more information, visit www.tiffany.com or call the 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, products, store openings, operating margin, interest and other expenses, the effective income tax rate, net earnings, inventories, growth opportunities and capital expenditures. 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 Form 10-K, 10-Q and 8-K 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.

TIFFANY & CO. AND SUBSIDIARIES
(Unaudited)

NON-GAAP MEASURES

Net Sales

The Company's reported sales reflect either a translation-related benefit from strengthening foreign currencies or a detriment from a strengthening U.S. dollar.

The Company reports information in accordance with U.S. Generally Accepted Accounting Principles ("GAAP"). Internally, management monitors its sales performance on a non-GAAP basis that eliminates the positive or negative effects that result from translating sales made outside the U.S. into U.S. dollars ("constant-exchange-rate basis"). Management believes this constant-exchange-rate basis provides a more representative assessment of sales performance and provides better comparability between reporting periods.

The Company's management does not, nor does it suggest that investors should, consider such non-GAAP financial measures in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. The Company presents such non-GAAP financial measures in reporting its financial results to provide investors with an additional tool to evaluate the Company's operating results. The following table reconciles sales percentage increases (decreases) from the GAAP to the non-GAAP basis versus the previous year:

Net Earnings

The accompanying press release presents net earnings and highlights prior year nonrecurring items in the text. Management believes excluding such items presents the Company's year-to-date results on a more comparable basis to the corresponding period in the prior year, thereby providing investors with an additional perspective to analyze the results of operations of the Company at October 31, 2012. The following table reconciles GAAP net earnings and net earnings per diluted share ("EPS") to non-GAAP net earnings and net earnings per diluted share, as adjusted:

Contact:
Mark L. Aaron
212-230-5301
mark.aaron@tiffany.com

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