TIF Overview

Originating in 1837 as a “stationary and fancy goods emporium,” Tiffany & Co. (TIF) began its humble beginnings in New York City, more specifically lower Manhattan. Founded by Charles Lewis Tiffany and John B. Young, the store initially retailed a wide variety of stationary items.

Having borrowed $1000 from his father, Tiffany, along with the help of Young, set up shop in the city selling small stationary items and other trinkets. Following the first three business days after the opening of the store, Tiffany and Young brought in a grand total of $4.38 in sales. Despite the disheartening start to the new business venture, the two entrepreneurs stayed the course and expanded their business over the next few years.

C.L. Tiffany began his retail experience at the age of 15 while working at a local general store that was owned by his father in the Northeastern portion of Connecticut. His father, who owned a cotton manufacturing company, employed young Charles to work in the office of his mill, furthering his business knowledge.

Nearing the end of 1839, C.L. Tiffany had added other items to the company’s product line including cutlery, glassware, clocks, porcelain and most importantly, jewelry. Two years later, the company expanded their operations to include more inventory of items routinely sold, and changed their name to Tiffany, Young and Ellis.

Tiffany & Co. is primarily engrossed in the designing, manufacturing and retailing of fine jewelry that includes gemstone jewelry and gemstone band rings, diamond rings and wedding bands for brides and grooms, and non-gemstone, gold, or platinum jewelry, as well as sterling silver jewelry.

In addition to the company’s extensive line of fine jewelry, the company also offers Tiffany & Co. branded merchandise. These items tend to include timepieces and clocks, sterling silver merchandise such as flatware, hollowware, trophies, key holders, picture frames, and desk accessories. Not to mention stainless steel flatware, crystal, glass, china, custom engraved stationery, writing instruments, and eyewear and fashion accessories.

The company services their customer base through catalogs, retail sales, business-to-business direct selling operations, and wholesale distribution in the U.S. and Internationally. Tiffany & Co. also include fragrance products under the labels Tiffany, Pure Tiffany, and Tiffany for Men brands.

Retail sales throughout the Western hemisphere consist of sales transacted in Tiffany & Co. stores within the U.S., Mexico, Canada and Brazil, as well as sales of a wide selection of its products through the company’s websites.

Products and services are marketed through a sales organization, through advertising in newspapers and business periodicals and through the publication of special catalogs. Tiffany distributes their catalogs of selected merchandise to a list of domestic customers and to mailing lists rented from third parties.

In the international markets, Tiffany’s sales entail transactions in company locations throughout Japan, China, Korea, Hong Kong, Taiwan, Australia, Singapore, Macau and Malaysia. Following the company’s fiscal 2008 figures, net sales in Japan of Tiffany & Co. represented 19% of the company’s net sales.

Across the pond, revenues are generated from sales in stores located in the U.K., Germany, Italy, France, Austria, Switzerland, Belgium, Spain and Ireland. Tiffany also offers a unique selection of merchandise for sale in England, Wales, Northern Ireland and Scotland through its website.

Within today’s current market environment, Tiffany & Co., which operates more than 200 stores worldwide, competes primarily with privately held companies, which include Bulgari S.p.A., LVMH Moet Hennessy Louis Vuitton SA and Compagnie Financiere Richemont SA. The company also vies against smaller publicly traded companies like Blue Nile Inc. (NILE), Zale Corp. (ZLC), Signet Jewelers Ltd. (SIG) and DGSE Companies Inc. (DGC).

By BetterTrades