Tiffany & Co. is a holding company that operates through Tiffany and Company (“Tiffany”) and its other subsidiary companies (collectively, “the Company”). Through Tiffany and its other subsidiaries, the Company is engaged in product design, manufacturing and retailing activities. Tiffany’s merchandise offerings include an extensive selection of jewelry (91% of worldwide net sales in fiscal 2017), as well as timepieces, home and accessories, and fragrances. Tiffany was founded in 1837 when Charles Lewis Tiffany opened a store in downtown Manhattan. Today, more than 300 TIFFANY & CO. stores serve customers around the world.
The Company’s operating segments are as follows: the Americas region (45% of worldwide net sales in fiscal 2017) includes sales transacted in TIFFANY & CO. stores in the United States, Canada, Mexico, Brazil and Chile, as well as sales of TIFFANY & CO. products in certain of those markets through Internet, catalog, business-to-business and wholesale distribution; the Asia-Pacific region (26% in 2017) consists of sales transacted in TIFFANY & CO. stores in Australia, China, Hong Kong, Korea, Macau, Malaysia, New Zealand, Singapore, Taiwan and Thailand, as well as sales of TIFFANY & CO. products in certain of those markets through Internet and wholesale distribution; Japan (14% in 2017) consists of sales transacted in TIFFANY & CO. stores within Japanese department stores and in freestanding stores, as well as sales of TIFFANY & CO. products through Internet, business-to-business and wholesale distribution; Europe (12% in 2017) consists of sales transacted in TIFFANY & CO. stores in Austria, Belgium, the Czech Republic, France, Germany, Ireland, Italy, the Netherlands, Russia, Spain, Switzerland and the United Kingdom, as well as sales of TIFFANY & CO. products in certain of those markets through Internet distribution; and Other (3% in 2017) consists of retail sales transacted in TIFFANY & CO. stores in the United Arab Emirates, wholesale sales of TIFFANY & CO. products to independent distributors for resale in certain markets, wholesale sales of diamonds obtained through bulk purchases that are subsequently deemed not suitable for Tiffany’s needs, and earnings received from licensing agreements.
The Company’s key strategic priorities are to:
- Amplify an evolved brand message.
- Renew the Company’s product offerings and enhance in-store presentations.
- Deliver an exciting omnichannel customer experience.
- Strengthen the Company’s competitive position and lead in key markets.
- Cultivate a more efficient operating model.
- Inspire an aligned and agile organization to win.
By pursuing these key strategic priorities, management is committed to the following long-term financial objectives:
- To achieve sustainable sales growth.
- To increase retail productivity and profitability.
- To achieve improved operating margins, through both improved gross margin and efficient expense management.
- To improve inventory and other asset productivity and cash flow.
- To maintain a capital structure that provides financial strength and the ability to invest in strategic initiatives, while also allowing for the return of excess capital to shareholders through dividends and share repurchases.