SECURITIES AND EXCHANGE COMMISSION
                            Washington, D.C. 20549
                               ________________

                                   FORM 10-Q
                               ________________

(Mark One)

  X   QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
      EXCHANGE ACT OF 1934 for the quarter ended April 30, 1995.  OR

      TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
      EXCHANGE ACT OF 1934 for the transition from ________ to _____________.


                        Commission file number:  1-9494

                                 TIFFANY & CO.

            (Exact name of registrant as specified in its charter)

Delaware                                             13-3228013
(State of incorporation)                             (I.R.S. Employer
                                                     Identification No.)


727 Fifth Ave. New York, NY                          10022
(Address of principal executive offices)             (Zip Code)


Registrant's telephone number, including area code:  (212) 755-8000


Former name, former address and former fiscal year, if changed since last
report _________.

Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to
such filing requirements for the past 90 days.  Yes    X   .     No       .

APPLICABLE ONLY TO CORPORATE ISSUERS: Indicate the number of shares
outstanding of each of the issuer's classes of common stock as of the latest
practicable date:  Common Stock, $.01 par value, 15,736,784 shares outstanding
at the close of business on April 30, 1995.





                        
                        TIFFANY & CO. AND SUBSIDIARIES
                              INDEX TO FORM 10-Q
                     FOR THE QUARTER ENDED APRIL 30, 1995

PART I      FINANCIAL INFORMATION                                PAGE

Item 1.     Financial Statements

            Consolidated Balance Sheets - April 30, 1995
                  (Unaudited) and January 31, 1995               3

            Consolidated Statements of Income - for the 
                  three months ended April 30, 1995 
                  and 1994 (Unaudited)                           4

            Consolidated Statements of Stockholders'
                  Equity - for the three months ended
                  April 30, 1995 (Unaudited)                     5

            Consolidated Statements of Cash Flows - for
                  the three months ended April 30, 1995
                  and 1994 (Unaudited)                           6

            Notes to Consolidated Financial Statements           7-8
                  (Unaudited)                        


Item 2.     Management's Discussion and Analysis of
            Financial Condition and Results of Operations        9-11


PART II - OTHER INFORMATION


Item 6.     Exhibits and Reports on Form 8-K                     12

            (a)   Exhibits                                 
            (b)   Reports on Form 8-K

                                     - 2 -

                                     

PART I.  FINANCIAL INFORMATION
ITEM I.  FINANCIAL STATEMENTS
TIFFANY & CO. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (in thousands, except per share amounts) April 30, January 31, 1995 1995* (Unaudited) ASSETS Current assets: Cash and short-term investments $ 16,631 $ 44,318 Accounts receivable, less allowances of $5,051 and $5,721 58,216 61,622 Income tax receivable 7,925 7,925 Inventories 295,370 270,075 Prepaid expenses 16,786 17,868 ------- ------- Total current assets 394,928 401,808 Property and equipment, net 107,815 103,478 Deferred income taxes 14,324 14,094 Other assets, net 32,740 31,992 ------- ------- $549,807 $551,372 ======= ======= LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Short-term borrowings $ 58,122 $ 60,696 Accounts payable and accrued liabilities 76,673 81,639 Income taxes payable 4,383 13,607 Merchandise and other customer credits 8,606 8,529 ------- ------- Total current liabilities 147,784 164,471 Long-term trade payable 32,659 27,591 Reserve for product return 13,103 13,103 Long-term debt 101,500 101,500 Deferred income taxes 2,917 3,298 Postretirement/employment benefit obligation 17,015 16,581 Other long-term liabilities 3,244 3,131 Commitments and contingencies Stockholders' equity: Common Stock, $.01 par value; authorized 30,000 shares, issued 15,737 and 15,703 157 157 Additional paid-in capital 72,757 71,821 Retained earnings 152,091 151,032 Foreign currency translation adjustments 6,580 (1,313) ------- -------- Total stockholders' equity 231,585 221,697 ======= ======== $549,807 $551,372 * Reclassified for comparative purposes See notes to consolidated financial statements - 3 - TIFFANY & CO. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME (Unaudited) (in thousands, except per share amounts)
For the Three Months Ended April 30, 1995 1994 Net sales $150,144 $131,207 Cost of goods sold 72,781 64,007 ------- ------- Gross profit 77,363 67,200 Selling, general and administrative expenses 70,272 60,783 Provision for uncollectible accounts 334 303 ------- ------- Income from operations 6,757 6,114 Other expenses, net 2,961 2,817 ------- ------- Income before income taxes 3,796 3,297 Provision for income taxes 1,636 1,421 ------- ------- Net income $ 2,160 $ 1,876 ======= ======= Net income per share: Primary $ 0.14 $ 0.12 ======= ======= Fully diluted $ 0.14 $ 0.12 ======= ======= Weighted average number of common shares: Primary 15,862 15,803 Fully diluted 16,759 16,696
See notes to consolidated financial statements. - 4 - TIFFANY & CO. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Unaudited) (in thousands)
Foreign Total Additional Currency Stockholders' Common Stock Paid-In Retained Translation Equity Shares Amount Capital Earnings Adjustments BALANCES, January 31, 1995 $221,697 15,703 $157 $71,821 $151,032 $(1,313) Issuance of Common Stock 598 19 - 598 - - Exercise of stock options 231 15 - 231 - - Tax benefit from exercise of stock options 107 - - 107 Cash dividends on Common Stock (1,101) - - - (1,101) - Foreign currency translation adjustments 7,893 - - - - 7,893 Net income 2,160 - - - 2,160 - ------- ------ ------ ------- ------- ------- BALANCES, April 30, 1995 $231,585 15,737 $157 $72,757 $152,091 $ 6,580 ======= ====== ====== ======= =======
See notes to consolidated financial statements - 5 - TIFFANY & CO. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (in thousands)
For the Three Months Ended April 30, 1995 1994* Cash Flows From Operating Activities: Net income $ 2,160 $ 1,876 Adjustments to reconcile net income to net cash used in operating activities: Depreciation and amortization 4,360 4,196 Provision for uncollectible accounts 334 303 Reduction in reserve for product return - (184) Provision for inventories 212 255 Deferred income taxes (711) (362) Income tax receivable - (2,972) Provision for postretirement/employment benefits 434 426 (Increase)/decrease in assets and increase/ (decrease) in liabilities, net of acquisitions: Accounts receivable 6,196 12,957 Inventories (6,176) (12,641) Prepaid expenses 1,640 (109) Other assets, net (627) (3,386) Accounts payable 2,394 (505) Accrued liabilities (9,587) (181) Income taxes payable (9,867) (4,055) Merchandise and other customer credits 77 (23) Other long-term liabilities 141 332 ------ ------ Net cash used in operating activities (9,020) (4,073) ====== ====== Cash Flows From Investing Activities: Capital expenditures (7,396) (2,495) Disposal of assets 357 - Other - (127) ------ ------- Net cash used in investing activities (7,039) (2,622) ------ ------- Cash Flows From Financing Activities: (Decrease)/increase in short-term borrowings (11,463) 10,983 Issuance of Common Stock 598 - Proceeds from exercise of stock options 231 70 Tax benefit from exercise of stock options 107 4 Cash dividends on Common Stock (1,101) (1,096) ------ ------ Net cash (used in)/provided by financing activities (11,628) 9,961 ====== ====== Net (decrease)/increase in cash and short-term investments (27,687) 3,266 Cash and short-term investments at beginning of year 44,318 4,994 ------ ------ Cash and short-term investments at end of three months $ 16,631 $ 8,260 ====== ====== Supplemental Disclosure of Cash Flow Information: Cash paid during the three months for: Interest expense $ 3,670 $ 3,102 ====== ====== Income taxes $ 12,179 $ 8,816 ====== ======
*Reclassified for comparative purposes See notes to consolidated financial statements - 6 - TIFFANY & CO. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) 1. CONSOLIDATED FINANCIAL STATEMENTS The accompanying consolidated financial statements include the accounts of Tiffany & Co. and all majority-owned domestic and foreign subsidiaries (the "Company"). All material intercompany balances and transactions have been eliminated. The statements are without audit and, in the opinion of management, include all adjustments (which include only normal recurring adjustments except for the adjustment necessary as a result of the LIFO method of inventory valuation, which is based on assumptions as to inflation rates and projected fiscal year- end inventory levels) necessary to present fairly the Company's financial position as of April 30, 1995 and the results of operations and cash flows for the interim periods presented. The audited financial statements for January 31, 1995 are presented without accompanying footnotes which are included in the Company's Form 10-K filing. Since the Company's business is seasonal, with a higher proportion of sales and income generated in the last quarter of the fiscal year, the results of operations for the three months ended April 30, 1995 and 1994 are not necessarily indicative of the results of the entire fiscal year. 2. INVENTORIES Inventories at April 30, 1995 and January 31, 1995 are summarized as follows:
April 30, January 31, 1995 1995 (in thousands) Finished goods $248,706 $227,412 Raw materials 43,128 38,262 Work in process 6,476 6,869 ------- ------- 298,310 272,543 Reserves (2,940) (2,468) ------- ------- $295,370 $270,075 ======= =======
At April 30, and January 31, 1995, $198,321,000 and $189,943,000, respectively, of inventories were valued using the LIFO method. The excess of such inventories valued at replacement cost over the value based upon the LIFO method was approximately $10,670,000 and $9,770,000 at April 30, 1995 and January 31, 1995, respectively. The LIFO valuation method had the effect of decreasing net income by $0.03 per share, for the three month periods ended April 30, 1995 and 1994, respectively. - 7 - 3. REVOLVING CREDIT FACILITY The Company is in the process of arranging for a new five-year $130,000,000 multicurrency revolving credit facility to replace the current $100,000,000 revolving credit facility and yen 2,500,000,000 ($29,690,000) non-collateralized line of credit, both of which expire in July 1995. The Company has received signed commitment letters from the participating lenders, subject to their satisfactory review of documentation. 4. EARNINGS PER SHARE Primary earnings per common share data has been computed by dividing net income by the weighted average number of shares outstanding during the period, including dilutive stock options. Fully diluted earnings per common share has been computed by dividing net income, after giving effect to the elimination of interest expense and bond amortization fees, net of income tax effect, applicable to the convertible subordinated debentures, by the weighted average number of shares outstanding including dilutive stock options and the assumed conversion of the subordinated debentures using the "if converted" method. 5. SUBSEQUENT EVENT On May 18, 1995, Tiffany's Board of Directors declared a quarterly dividend of $0.07 per common share. This dividend will be paid on July 10, 1995 to stockholders of record on June 20, 1995. - 8 - PART I. FINANCIAL INFORMATION Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS RESULTS OF OPERATIONS The Company operates three channels of distribution: U.S. Retail includes retail sales in Company-operated stores in the U.S. and wholesale sales to independent retailers in North America; Direct Marketing includes corporate (business-to-business) and catalog sales; and International Retail includes retail sales through Company-operated stores and boutiques, corporate sales, and wholesale sales to independent retailers and distributors in Asia-Pacific, Europe, Canada and the Middle East. Net sales increased 14% in the first quarter. Sales by channel of distribution were as follows: Three months ended April 30, (in thousands) 1995 1994 U.S. Retail $ 61,769 $ 57,223 Direct Marketing 18,763 18,807 International Retail 69,612 55,177 ------- ------- $150,144 $131,207 ======= ======= ======= ======== U.S. Retail sales increased 8% in the first quarter. Comparable U.S. store sales increased 7%, which included 5% growth in New York retail sales and 9% growth in U.S. branch store sales. The sales increase was generated by a higher volume of retail transactions, primarily made by local-resident customers, as opposed to international tourists. Direct Marketing sales in the first quarter were nearly equal to the prior year. Catalog sales rose 11% due to a higher number of orders; however, corporate sales declined 5%, reflecting continued cautious spending by the corporate division's customers. International Retail sales increased 26% in the first quarter. The Company achieved sales growth in many of its international markets which, based on the generally weakened U.S. dollar, was further increased when translated into U.S. dollars. In Japan, the Company's largest international market, comparable store sales rose 11% in yen. Management believes the Company's results in Japan have benefitted from the Company's recent merchandising, marketing and publicity initiatives, as well as from favorable consumer response to price reductions made in Japan in October 1993 and June 1994. The Company also achieved sales growth elsewhere in the Asia-Pacific region and in Europe. The Company's reported sales and earnings results benefit from a strengthening Japanese yen and are adversely affected by a strengthening U.S. dollar. The Company maintains a foreign currency hedging program for merchandise purchase transactions initiated from Japan in order to reduce the potential negative impact of a significant strengthening of the U.S. dollar against the yen on the Company's financial results. The Company's pretax expense related to its hedging program was $252,000 in 1995's first quarter, compared with $182,000 in 1994's first quarter. Gross margin (gross profit as a percentage of net sales) was 51.5% in the first quarter, compared with 51.2% in the comparable 1994 period. The increase was primarily attributable to favorable shifts in sales mix between channels of distribution, which more than offset the effect of a June 1994 price reduction in Japan. Operating expenses (selling, general and administrative expenses and the provision for uncollectible accounts) increased 16% in the first quarter compared with 1994's first quarter. The increase was due to incremental occupancy, staffing and marketing expenses related to the Company's worldwide expansion program, as well as to the weakened U.S. dollar and its effect on the translation of foreign operating expenses into U.S. dollars. As a percentage of net sales, operating expenses were 47.0% and 46.6% in the first quarters of 1995 and 1994, respectively. As a result of the above factors, net income of $2,160,000, or $0.14 per share, was 15% higher than $1,876,000, or $0.12 per share, in the first quarter of 1994. FINANCIAL CONDITION Management believes that the Company's financial condition at April 30, 1995 provides sufficient liquidity and resources to support current business activity and planned expansion. Working capital and the current ratio were $247,144,000 and 2.7:1 at April 30, 1995 compared with $234,687,000 and 2.4:1 at January 31, 1995. Inventories (which represent the largest component of working capital) at April 30, 1995 were 9% higher than at January 31, 1995. A significant portion of the increase was due to the weakened U.S. dollar and its effect on the translation of foreign inventories into U.S. dollars and, to a lesser extent, to merchandise purchases to support sales growth, new stores and expanded product offerings. Inventory turnover was 1.0 times at April 30, 1995 and 0.9 times at January 31, 1995. The Company's objective is to continue to improve inventory performance through: refinement of replenishment systems; a reorganization of merchandising management to increase the focus on the specialized disciplines of product development, assortment planning and inventory management; the creation of a visual merchandising group to improve the presentation and management of display inventories in each store; and assortment editing by product category. Capital expenditures were $7,396,000 in the first quarter of 1995 compared with $2,495,000 in 1994's first quarter. The increase was related to the opening and/or renovation of retail stores, as well as relocations and/or renovations of certain administrative and manufacturing facilities. Based on current expansion plans, the Company expects capital expenditures in fiscal 1995 will be approximately $30,000,000, compared with $18,977,000 in fiscal 1994. The Company incurred a net cash outflow from operating activities of $9,020,000 in the first quarter of 1995, compared with an outflow of $4,073,000 in 1994's first quarter. Net debt (short-term borrowings and long- term debt, less cash and short-term investments) and the ratio of net debt to total capital (net debt and stockholders' equity) was $142,991,000 and 38% at April 30, 1995 compared with $117,878,000 and 35% at January 31, 1995. In addition, the Company had a long-term trade payable of yen 2,750,000,000 ($32,659,000) at April 30, 1995 and yen 2,750,000,000 ($27,591,000) at January 31, 1995 which relates to certain merchandise repurchased in 1993 under the Company's realignment of its Japan business and is payable to Mitsukoshi Ltd. on February 28, 1998. It is management's goal, on an annual basis, to improve inventory turnover and generate excess cash flow to reduce the ratio of net debt to total capital. The Company's sources of working capital are internally generated funds and funds available under a $100,000,000 revolving credit facility and a yen 2,500,000,000 ($29,690,000) non-collateralized line of credit. The Company is in the process of arranging for a new five-year $130,000,000 multicurrency revolving credit facility to replace the current credit facility and line of credit, both of which expire in July 1995. The Company has received signed commitment letters from the participating lenders, subject to their satisfactory review of documentation. Management anticipates that internally generated funds and funds available under the new facility will be sufficient to support the Company's planned worldwide business expansion, as well as seasonal working capital increases typically required during the third and fourth quarters of each year. The Company's business is seasonal in nature, with the fourth quarter typically representing a proportionally greater percentage of annual sales, income from operations, net income and cash flow. Management expects such seasonality to continue in the future. PART II. OTHER INFORMATION Item 6. Exhibits and Reports on Form 8-K (a) Exhibits 10.60 Registrant's 1988 Director Stock Option Plan as amended May 18, 1995, and form of Stock Option Agreement. 11 Statement re Computation of Per Share Earnings. (b) Reports on form 8-K None. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. TIFFANY & CO. (Registrant) Date: June 8, 1995 By: /s/ James N. Fernandez James N. Fernandez Senior Vice President - Finance and Chief Financial Officer (principal financial officer) EXHIBIT INDEX Exhibit Number 10.60 Registrant's 1988 Director Stock Option Plan as amended May 18, 1995, and form of Stock Option Agreement. 11 Statement re Computation of Per Share Earnings
                          TIFFANY & CO.
                    1988 DIRECTOR OPTION PLAN
                     AS AMENDED MAY 18, 1995
          PART 1.  PLAN ADMINISTRATION AND ELIGIBILITY

 I.  Purpose

     The purpose of this 1988 Director Option Plan (the "Plan")
of Tiffany & Co. (the "Company") is to encourage ownership in the
Company by outside directors of the Company whose continued
services are considered essential to the Company's continued
progress and thus to provide such directors with a further
incentive to continue as directors of the Company.

II.  Administration

     An administrator (the "Administrator"), who shall be the
Secretary of the Company and not eligible to participate in the
Plan, shall administer the Plan.  Grants of stock options under
the Plan and the amount and nature of the awards to be granted
shall be automatic as described in Section VI.  However, all
questions of interpretation of the Plan or of any options issued
under it shall be determined by the Administrator and such
determination shall be final and binding upon all persons having
an interest in the Plan.  

III. Participation in the Plan

     Directors of the Company who are not employees of the
Company or any subsidiary of the Company shall be eligible to
participate in the Plan.
Employees of the Company or any subsidiary of the Company shall
not be eligible to participate in the Plan.

IV.  Stock Subject to the Plan

     The maximum number of shares which may be optioned under the
Plan shall be One Hundred Thousand (100,000) shares of the
Company's $.01 par value Common Stock.  This limitation on the
number of shares which may be optioned under the Plan shall be
subject to adjustment as provided in Section XI of the Plan.

     If any outstanding option under the Plan for any reason
expires or is terminated without having been exercised in full,
the shares allocable to the unexercised portion of such option
shall again become available for grant pursuant to the Plan.

     Upon the exercise of an option under the Plan, the Company
may issue shares of the Company's authorized but unissued Common
Stock or the Company may repurchase shares of its Common Stock in
the open market or otherwise.


                 PART 2.  DESCRIPTION OF OPTIONS

V.   Non-Statutory Stock Options

     All options granted under the Plan shall be non-statutory
options not entitled to special tax treatment under Section 422A
of the Internal Revenue Code of 1986, as amended to date (the
"Code").

VI.  Terms, Conditions and Form of Options

     Each Option granted under this Plan shall be evidenced by a
written agreement in such form as the Administrator shall from
time to time approve, which agreements and the grant of options
under the Plan shall comply with and be subject to the following
terms and conditions: 

     A.   Option Grant Dates.  Options shall be granted
automatically on the date of the tenth business day in January (a
"Grant Date") of any year (except that for the year in which the
Plan is adopted the Grant Date shall be the date of the Plan's
adoption) to any eligible director who, on or prior to June 30th
of the year prior to the year in which said Grant Date occurs,
files with the Administrator an irrevocable election to receive a
stock option in lieu of all or fifty percent (50%) of retainer
fees to be earned in the calendar year in which said Grant Date
occurs (a "Plan Year").

     B.   Option Formula.  The number of option shares granted to
any eligible director shall be equal to the nearest number of
whole shares determined in accordance with the following formula:

                 Deferred Retainer           Number
               ________________________ =      of
               (Fair Market Value x .5)      Shares

"Deferred Retainer" shall mean the amount which the optionee
would be entitled to receive for serving as a director in the
relevant Plan Year but for the election referred to in Section
VIA above.  The term "Deferred Retainer" shall not include fees
associated with service on any committee of the Board of
Directors nor with any other services to be provided to the
Company and shall not include fees paid directors on a per-
meeting-attended basis.  "Fair Market Value" shall mean the mean
of the highest and lowest quoted selling prices for the Company's
Common Stock on the relevant Grant Date as reported on The New
York Stock Exchange Composite Tape.

     C.   Options Non-Transferable.  Each option granted under
the Plan by its terms shall not be transferable by the optionee
otherwise than by will or by the laws of descent and distribution
and shall be exercised during the lifetime of the optionee only
by him.  No option or interest therein may be transferred,
assigned, pledged or hypothecated by the optionee during his
lifetime, whether by operation of law or otherwise, or be made
subject to execution, attachment or similar process.

     D.   Period of Option.  No option may be exercised before
the first anniversary of the date upon which it was granted;
provided, however, that any option granted pursuant to the Plan
shall become exercisable in full upon the retirement of the
director because of age or total and permanent disability, upon
the death of the optionee or upon the resignation or removal of
the optionee as a director of the Company following a Change in
Control.  A "Change in Control" shall mean the acquisition of
voting power in respect of thirty-five percent  (35%) of the
shares of voting stock in the company by any person (or any
corporation, partnership, trust, estate or group of persons or
entities, which group was formed pursuant to any agreement,
arrangement or understanding for the purpose of acquiring,
holding, voting or disposing of voting stock of the Company).  No
option shall be exercisable after the expiration of fifteen (15)
years from the date upon which such option is granted.  Each
option shall be subject to cancellation before its date of
expiration as hereinafter provided in Section XIV.

     E.   Exercise of Options.  Options may be exercised only by
written notice to the Company at its head office accompanied by
payment in cash, certified or bank cashier's check of the full
consideration for the shares as to which such options are
exercised.  Unless otherwise prohibited, such consideration may
be paid by delivery of shares of the Company's Common Stock;  any
such shares shall be valued at the fair market value of such
shares on the date of exercise.  Options may be exercised in full
or in part for whole shares (no fractional shares will be issued)
and any exercisable portion of an option grant not exercised may
be later exercised subject to the expiration date stated above.

     F.   Exercise by Representative Following Death of Director. 
A director, by written  notice to the Company, may designate one
or more persons (and from time to time change such designation)
including his legal representative, who, by reason of his death,
shall acquire the right to exercise all or a portion of the
option.  If the person or persons so designated wish to exercise
any portion of the option, they must do so within the term of the
option as provided in Subsection VID above. Any exercise by a
representative shall be subject to the provisions of this Plan.

     G.   Proration.  In the event an optionee ceases for any
reason to be a director of the Company prior to such time as an
option granted under this Plan becomes exercisable, such option
shall terminate in respect to the nearest whole number of
optioned shares as is the product of the total number of shares
subject to such option multiplied by a fraction, the numerator of
which is the number of months remaining in the Plan Year
following the month in which said optionee ceases to be a
director and the denominator of which is twelve (12). 

VII. Option Price

     The Option price per share for the shares covered by each
option shall be one-half (1/2) of the Fair Market Value on the
Grant Date for each respective option.


                   PART 3.  GENERAL PROVISIONS

VIII.     Prohibition on Assignment

      The rights and benefits under this Plan may not be assigned
except for the designation of a beneficiary as provided in
Section VI.

IX.  Time for Granting Options

      All options for shares subject to this Plan shall be
granted, if at all, not later than ten (10) years after the
adoption of this Plan by the Company's stockholders.

X.   Limitation of Rights

      A.   No Right to Continue as a Director.  Neither the Plan,
nor the granting of an option nor any other action taken pursuant
to the Plan shall constitute or be evidence of any agreement or
understanding, express or implied, that the Company will retain a
director for any period of time, or at any particular rate of
compensation.

     B.   No Stockholders' Rights for Option.  An optionee shall
have no rights as a stockholder with respect to the shares
covered by his options until the date of the issuance to him of a
stock certificate therefor, and no adjustment will be made for
dividends or other rights for which the record date is prior to
the date such certificate is issued.

XI.  Changes in Present Stock

     In the event of any merger, consolidation, reorganization,
recapitalization, stock dividend, stock split, or other change in
the corporate structure or capitalization affecting the Company's
present Common Stock, appropriate adjustment shall be made in the
number (including the aggregate numbers specified in Section IV)
and kind of shares which are or may become subject to options
granted or to be granted hereunder.


XII. Effective Date of the Plan

     The Plan shall take effect on the date of adoption by the
directors of the Company subject to and conditioned upon
subsequent approval by the stockholders of the Company.  Options
may be granted under the Plan at any time after such adoption and
prior to the termination of the Plan; provided, however, that if
the stockholders of the Company fail to approve the Plan by
December 31, 1988, all options granted under the Plan and
elections made pursuant to Section VIA of the Plan shall be void
ab initio and without further force or effect;  and provided
further, that the Plan, all options granted under the Plan and
all elections made pursuant to Section VIA of the Plan shall be
void ab initio and without further force or effect if the staff
of the Securities and Exchange Commission fails to confirm, on or
before January 20, 1989 the following views:

     A.   That the Plan meets the requirements of Rule 16b-3 as
promulgated by the Securities and Exchange Commission; and

     B.   That participation of non-employee directors in the
Plan will not disqualify such directors from being characterized
as "disinterested persons" under Rule 16b-3(b) and (d)(3) for the
purpose of serving as administrators of the Company's 1985 Stock
Option Plan and 1986 Stock Option Plan, or of any subsequently
adopted employee stock plan in which the non-employee director is
not eligible to participate.

XIII.     Amendment of the Plan

     The Board of Directors may suspend or discontinue the Plan
or amend it in any respect whatsoever; provided, however, that
without approval of the stockholders no revision or amendment
shall change the number of shares subject to the Plan (except as
provided in Section XI), change the designation of the class of
directors eligible to receive options, or materially increase the
benefits accruing to participants under the Plan.

XIV. Notice

     Any written notice to the Company required by any of the
provisions of this Plan shall be addressed to the Secretary of
the Company and shall become effective when it is received.

XV.  Governing Law

     This Plan and all determinations made and actions taken
pursuant hereto shall be governed by Law of the State of New York
and construed accordingly.


     (c)  No fractional shares of the Common Stock shall be
     issued on exercise of this option, in whole or in part.  

     3.   CESSATION OF DIRECTORSHIP.    In the event Optionee
ceases for any reason to be a director of the Company prior to
such time as the option hereby granted becomes exercisable, such
option shall terminate in respect to the nearest whole number of
optioned shares as is the product of the total number of shares
subject to such option multiplied by a fraction, the numerator of
which is the number of months remaining in the Plan Year
following the month in which said optionee ceases to be a
director and the denominator of which is twelve (12).

     4.   EARLY EXERCISE.     Notwithstanding Paragraph 2 (a)
above, this option shall become exercisable in full upon the
retirement of Optionee as a director of the Company because of
age or total and permanent disability, upon the death of Optionee
or upon the resignation or removal of Optionee as a director of
the Company following a Change in Control.  A "Change in Control"
shall mean the acquisition of voting power in respect of thirty-
five percent (35%) of the shares of voting stock in the Company
by any person (or any corporation, partnership, trust, estate or
group of persons or entities, which group was formed pursuant to
any agreement, arrangement or understanding for the purpose of
acquiring, holding, voting or disposing of voting stock of the
Company).  

     5.   EXERCISE; PAYMENT FOR AND DELIVERY OF STOCK. This
option may be exercised only by the Optionee or Optionee's
transferees by will or the laws of descent and distribution. 
This option may be exercised by giving written notice of exercise
to the Company specifying the number of shares to be purchased
and the total Option Price, accompanied by payment in full by
cash, a cashier's or certified bank check to the order of the
Company or, unless otherwise prohibited, by delivery of shares of
Common Stock in payment of such price.  Any such shares shall be
valued at the fair market value of such shares on the date of
exercise. 

     6.   LEGALITY. No shares of Common Stock may be issued or
transferred unless and until all legal requirements applicable to
such issuance or transfer have, in the opinion of the Company,
been complied with.  The Optionee shall, if requested by the
Company, give assurances satisfactory to the Company with respect
to such matters as the Company may deem desirable to assure
compliance with all applicable legal requirements, including,
without limitation, such assurances as the Company may deem
advisable to ensure the availability of an exemption from
registration under the Securities Act of 1933, as amended, for
the Common Stock purchased on exercise of this option.  


                         - Page 2 of 4 -


     7.   ADJUSTMENTS IN STOCK.    Subject to the provisions of
the Plan, if the outstanding shares of the Common Stock are
increased or decreased, or are changed into or exchanged for a
different number or kind of shares or securities as a result of
one or more reorganizations, recapitalizations, stock splits,
stock dividends or other change in corporate structure or
capitalization affecting the Common Stock, appropriate adjustment
shall be made in the number and/or type of shares or securities
subject to this option and the Option Price, so that the total
purchase price of the shares then subject to this option shall
remain unchanged. 

     8.   NONTRANSFERABILITY OF OPTION. This option is not
transferable otherwise than by will or the laws of descent and
distribution.  This option shall not be otherwise transferred,
assigned, pledged, hypothecated or otherwise disposed of in any
way, whether by operation of law or otherwise, and shall not be
subject to execution, attachment or similar process.  Upon any
attempt to transfer this option otherwise than by will or the
laws of descent and distribution or to assign, pledge,
hypothecate or otherwise dispose of this option, or upon the levy
of any execution, attachment or similar process upon this option,
this option shall immediately terminate and become null and void. 
Optionee, by written notice to Company, may designate one or more
persons (and from time to time change such designation) including
his legal representative, who, by reason of his death, shall
acquire the right to exercise all or a portion of this option. 
If the person or persons so designated wish to exercise any
portion of the option, they must do within the term of the option
as provided in Paragraph 2 above.  Any exercise by a
representative shall be subject to the provisions of the Plan.

     9.   NOTICES.  Any notice to be given to the Company shall
be personally delivered to or addressed to the Secretary of the
Company, at its principal office, and any notice to be given to
the Optionee shall be addressed to him at the address given
beneath his signature hereto, or at such other address as the
Optionee may hereafter designate in writing to the Company.  Any
notice to the Company is deemed given when received by the
Company.  Any notice to the Optionee is deemed given when
enclosed in a properly sealed envelope addressed as aforesaid,
registered or certified, and deposited, postage and registration
or certification fee prepaid, in a post office or branch post
office regularly maintained by the United States. 

     10.  WITHHOLDING.   The Company may make such provisions as
it may deem appropriate for the withholding of any taxes which
the Company determines it is required to withhold in order to be
entitled to a deduction for federal income taxes in connection
with this Agreement and the transactions contemplated hereby. 



                         - Page 3 of 4 -


     11.  STOCK OPTION PLAN.  This option is subject to all of
the terms and conditions of the Plan as previously amended and as
the same shall be amended from time to time in accordance with
the terms thereof, but no such amendment shall adversely affect
the Optionee's rights under this option. 

     12.  NO RIGHT TO CONTINUE AS DIRECTOR.  Nothing in the Plan
or in this Agreement shall confer upon the Optionee any right to
continue as a director of the Company or a subsidiary. 

     13.  NO STOCKHOLDERS' RIGHTS FOR OPTION.     An optionee
shall not have rights as a stockholder with respect to the shares
covered by this Option until the date of the issuance to him of a
stock certificate therefor, and no adjustment will be made for
dividends or other rights for which the record date is prior to
the date such certificate is issued.

     14.  LAWS APPLICABLE TO CONSTRUCTION.   This Agreement shall
be construed and enforced in accordance with the laws of the
State of New York.


     TIFFANY & CO.                      OPTIONEE




By: ________________________  By:  __________________________
     William R. Chaney
     Chairman
               
                                        










                         - Page 4 of 4 -

Item 6.                        TIFFANY & CO. AND SUBSIDIARIES
EXHIBIT 11             STATEMENT RE COMPUTATION OF PER SHARE EARNINGS 
                                (Unaudited)
                            (in thousands, except per share data)

Three Months Ended April 30, April 30, 1995 1994 PRIMARY EARNINGS PER SHARE: Net income on which primary earnings per share are based $ 2,160 $ 1,876 ======= ======= Weighted average number of common shares 15,729 15,663 Add: Weighted average effect of the exercise of stock options 133 140 ------- ------- Weighted average number of shares on which primary earnings are based 15,862 15,803 ======= ======= Primary net income per common share $ 0.14 $ 0.12 ======= ======= FULLY DILUTED EARNINGS PER SHARE: Net income on which primary earnings per share are based $ 2,160 $ 1,876 Add: Interest and fees on convertible subordinated debt, net of applicable income taxes 442 467 ------- ------- Net income on which fully diluted earnings per share are based $ 2,602 $ 2,343 ======= ======= Weighted average number of common shares used in calculating fully diluted earnings per share 15,866 15,803 Shares assumed upon conversion of convertible debt, using the "if converted" method 893 893 ------- ------- Weighted average number of shares used in calculating fully diluted earnings per share 16,759 16,696 ======= ======= Fully diluted net income per common share $ 0.14 $ 0.12 ======= =======
NOTE:In anticipation of the 6 3/8% Convertible Subordinated Debenture's dilutive effect in the fourth quarter, fully diluted earnings per share reflects the weighted average number of common shares outstanding under the "if converted" method which assumes conversion as of the bond issuance date of the Debentures. Since the "if converted" method had the effect of increasing fully diluted earnings per share (anti-dilutive) for the three months ended April 30, 1995 and 1994, primary earnings per share was used for financial statement presentation purposes.
 

5 3-MOS JAN-31-1995 FEB-01-1995 APR-30-1995 16,631 0 59,370 (2,443) 295,370 394,928 160,764 (52,949) 549,807 147,784 101,500 157 0 0 231,428 549,807 150,144 150,144 72,781 143,387 2,961 334 3,276 3,796 1,636 2,160 0 0 0 2,160 0.14 0.14