Tiffany&co--Financial Presentation

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Tiffany Co

• A Financial Presentation
• By
• Tiffany jewelry life

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contents

• Background of Tiffanys
• Financial Analysis
• Liquidity
• Activity
• Leverage
• Profitability
• Accounting Methods
• Auditors Report
• Contingencies
• Employee Benefits
• Conclusions

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Background

• Founded in 1837 by Charles Lewis Tiffany
• There are over 150 Tiffany Co. Stores in 17
  countries
• Revenue for the past 12 months is 2,307, 876,000
• Little Switzerland Iridesse
• Direct Sourcing relationship
• Design, Manufacture, Sell
• The main Tiffanys stores accounted for 82 of
  net sales in 2004.

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BackgroundProducts
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BackgroundProducts
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Background

• 1837 Non-negotiable Prices
• 1865 - Civil War Supplier
• 1873 Museums
• 1885 Great Seal of the U.S.
• Silver and Platinum Standards
• 1950-1961 Breakfast at Tiffanys (Book Movie)
• 1967 Super Bowl
• 2004 NASCAR

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BackgroundCompetitors
RichemontRoyal DoultonSaks Fifth
AvenueShiseidoSignetUnion DiamondVan Cleef
ArpelsWaterford WedgwoodYves Saint-Laurent
GroupeZale

• AGARC InternationalBlue NileBrown-FormanBulg
  ariBulovaCartierChanelChristie'sElizabeth
  Arden
• Estée LauderFortunoffArmaniGucciH.
  SternHermès

• Inter ParfumsL'OréalSociété du
  LouvreLVMHRolexMovado GroupNeiman
  MarcusNordstromParlux FragrancesRevlonRichard-
  Ginori 1735

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Financial Analysis
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Financial Analysis
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Financial Analysis
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Financial Analysis
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Financial Analysis
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Financial Analysis
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Accounting Methods

• U.S. Inventory Valuation LIFO method.
• LIFO Conformity Rule
• Foreign Subsidiaries and Japan Average Cost
• Depreciation Straight Line Method.
• Amortization of Intangible Asset Straight Line
  Method.

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Auditors Report

• The Auditing Firm was PricewaterhouseCoopers LLP
• The financial statements were presented fairly
  and in accordance with the Generally Accepted
  Accounting Principals.
• Qualified Opinion- SFAS No. 123R Share Based
  Payment

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Contingencies

• Office, warehouse, manufacturing facility, and
  retail facility Leases.
• Routine Litigation

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Employee Benefits

• HEALTHMedical, Dental, Vision, and Prescription
  Drug Plan RETIREMENTRetirement Savings
  401(k) Plan (with company match) Pension
  PlanEmployee Stock Ownership PlanDISABILITY
  BENEFITSLong Term Disability PlanShort Term
  Disability PlanSURVIVOR PROTECTIONGroup Term
  Life InsuranceAccidental Death Dismemberment
  InsuranceBusiness Travel Accident
  InsuranceSupplemental Group Term Life Insurance

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Conclusions

• I would invest in the Firm.
• Gross Profit Margin is considerably higher than
  the Industry average.
• Net Profit Margin is greater than the Industry
  Average.
• I would seek employment in this firm

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Recap

• Background of Tiffanys (1831)
• Financial Analysis
• Liquidity Good
• Activity Good
• Solvency Good
• Profitability Good
• Accounting Methods
• LIFO and WAC
• Auditors Report - PricewaterhouseCoopers LLP
• Unqualified Opinion
• Contingencies
• New Accounting Standards, New Assets, Paying off
  debts, Accelerated Depreciation, Stopping
  development
• Employee Benefits
• Health, Retirement, Disability, Survivor
  Protection
• Conclusions
• Invest Yes
• Job Yes