Tiffany & Co

 

Tiffany & Co. (colloquially known as Tiffany’s)[5] is an American luxury jewelry and specialty retailer headquartered in New York City.[6] It sells jewelry, sterling silver, china, crystal, stationery, fragrances, water bottles, watches, personal accessories, and leather goods.[7] Tiffany is known for its luxury goods, particularly its diamond and sterling silver jewelry. It markets itself as an arbiter of taste and style.[8] These goods are sold at Tiffany stores, and through direct-mail and corporate merchandising.

Tiffany & Co. was founded in 1837 by the jeweler Charles Lewis Tiffany and became famous in the early 20th century under the artistic direction of his son Louis Comfort Tiffany. In 2018 net sales totaled US$4.44 billion.[9][10] In 2019 Tiffany operated 326 stores globally in countries such as the United States, Japan, and Canada, as well as Europe, the Latin America and Pacific Asia regions.[2]

LVMH purchased Tiffany & Co for $15.8 billion in January 2021.

Tiffany & Co.
Formerly Tiffany, Young and Ellis
(1837–1853)
Type Subsidiary
Industry Retail
Founded September 18, 1837 (183 years ago)
Founders Charles Lewis Tiffany
John B. Young
Headquarters 200 Fifth AvenueNew York City
New York, U.S. 10022[1]
Number of locations
326 (March 27, 2020)[2]
Area served
Worldwide
Key people
Anthony Ledru (CEO)
Alexandre Arnault (EVP)
Michael Burke (Chairman)
Revenue Increase US$4.44 billion
(FY Jan. 31, 2019)[3]
Decrease $790.3 million
(FY Jan. 31, 2019)[3]
Increase $586.4 million
(FY Jan. 31, 2019)[3]
Total assets Decrease $5.33 billion
(FY Jan. 31, 2019)[3]
Total equity Decrease $3.12 billion
(FY Jan. 31, 2019)[3]
Number of employees
14,200[4] (2019)
Parent LVMH
Website tiffany.com

Founded in 1837 by Charles Lewis Tiffany and John B. Young[11] in Brooklyn, Connecticut, as a “stationery and fancy goods emporium”, with the help of Charles Tiffany’s father who financed the store for only $1,000 with profits from a cotton mill.[12] The store initially sold a wide variety of stationery items, and operated as “Tiffany, Young and Ellis” as of 1838 at 259 Broadway in Lower Manhattan.[13] The name was shortened to Tiffany & Company in 1853, when Charles Tiffany took control and established the firm’s emphasis on jewelry.[14] The company has since opened stores in major cities worldwide. Unlike other stores at the time in the 1830s, Tiffany clearly marked the prices on its goods to forestall any haggling over prices. In addition, against the social norm at the time, Tiffany only accepted cash payments, and did not allow purchases on credit.[15] Such practices (fixed prices for ready money) were first introduced in 1750 by Palmer’s of London Bridge.[16]

“Blue Book” and the Civil War[edit]

The first Tiffany mail order catalog, known as the “Blue Book”, was published in 1845 in the United States (U.S.),[17] and publishing of the catalog continues in the 21st century. In 1862, Tiffany supplied the Union Army with swords (Model 1840 Cavalry Saber), flags and surgical implements. In 1867, Tiffany was the first U.S. firm to win an award for excellence in silverware at the Exposition Universelle in Paris. In 1868, Tiffany was incorporated.[8]

“Gilded Age”[edit]

In 1870, the company built a new store building at 15 Union Square West, Manhattan, designed by John Kellum and cost $500,000. It was described by The New York Times as a “palace of jewels”.[18] Tiffany stayed at this site until 1906.[18]

In 1877, an insignia that would become the New York Yankees “NY” logo was struck on a police medal of honor by Tiffany; the Yankees adopted the logo in 1909. In 1878, Tiffany won the gold medal for jewelry and a grand prize for silverware at the Paris Exposition. In 1879, Tiffany purchased one of the world’s largest yellow diamonds which became known as the Tiffany Diamond. The Tiffany Diamond has only been worn by three people, one of whom was Audrey Hepburn for the promotion of “Breakfast at Tiffany’s”.[19] In 1887, Tiffany bought a number of pieces at the auction of part of the French Crown Jewels, which attracted publicity and further solidified the Tiffany brand’s association with high-quality diamonds.[20] The company revised the Great Seal of the United States in 1885.

1900–1999[edit]

In 1902, after the death of Charles Lewis Tiffany, his son, Louis Comfort Tiffany, became the company’s first official design director.[17] In 1905, the Manhattan flagship store was relocated to the corner of 37th Street and Fifth Avenue, where it would remain for 35 years.[21]

In 1919, the company made a revision to the Medal of Honor on behalf of the United States Department of the Navy.[22] This “Tiffany Cross” version was rare because it was awarded only for combat, using the previous design for non-combat awards.[23] In 1942, the Navy established the Tiffany version for non-combat heroism as well but, in August 1942, the Navy subsequently eliminated the Tiffany Cross and the two-medal system.[24]

The company moved its flagship store to its present-day 727 Fifth Avenue building in 1940; the building was designed by Cross & Cross.[25] In 1956, legendary designer Jean Schlumberger joined Tiffany, and Andy Warhol collaborated with the company to create Tiffany holiday cards (circa 1956–1962).[17][26] In 1968, Lady Bird Johnson, First Lady of the U.S. at the time, commissioned Tiffany to design a White House china-service that featured 90 flowers.[27][28]

In November 1978, Tiffany & Co. was sold to Disney for about US$104 million in stock. However, in a 1984 Newsweek article, the Fifth Avenue Tiffany store was likened to the Macy’s department store during a white sale, due to the high number of inexpensive items on sale;[15] furthermore, customers complained about declining quality and service. In August 1984, Avon sold Tiffany to an investor group led by William R. Chaney for $135.5 million in cash. Tiffany went public again in 1987 and raised about $103.5 million from the sale of 4.5 million shares of common stock.[15]

Due to the 1990–1991 recession in the United States, Tiffany commenced an emphasis upon mass merchandising. A new campaign was launched that stressed how Tiffany could be affordable for all; for example, the company advertised that the price of diamond engagement rings started at $850. “How to Buy a Diamond” brochures were sent to 40,000 people, who called a toll-free number specifically set up to target the broader population.[15] However, to maintain its image as a luxury goods company, high-style images remained on display in Tiffany stores.[15]

Tiffany & Co. trademarked their signature Tiffany Blue color in 1998. Three years later they partnered with Pantone to standardize the color as “1837 Blue”.[29]

2000s[edit]

Tiffany & Co. blue gift boxes

The Tiffany & Co. Foundation was established in 2000 to provide grants to nonprofit organizations working in the areas of the environment and the arts.[30] In June 2004, Tiffany sued eBay, claiming that the latter was making profits from the sale of counterfeit Tiffany products;[31] however, Tiffany lost both at trial and on appeal.[32]

Tiffany & Co. established their subsidiary Laurelton Diamonds in 2002 to manage Tiffany’s worldwide diamond supply chain.[33]

In 2009, a collaboration between the Japanese mobile-phone operator SoftBank and Tiffany & Co. was announced. The two companies designed a cellphone, limited to ten copies, and containing more than 400 diamonds, totaling more than 20 carats (4.0 g). Each cellphone cost more than 100 million yen (£781,824).[34]

Also in 2009, the company launched their Tiffany Keys collection.[35]

2010s and 2020s[edit]

A media report in early July 2013 revealed that former Tiffany & Co. vice president Ingrid Lederhaas-Okun had been arrested and charged with stealing more than $1.3 million of diamond bracelets, drop earrings, and other jewelry. According to prosecutors from Manhattan, the official charges filed against Lederhaas-Okun accused her of “wire fraud and interstate transportation of stolen property.”[36]

The company’s Francesca Amfitheatrof-designed Tiffany T collection debuted in 2014.[37]

In February 2017, the company announced that CEO Frédéric Cuménal was out of a job, effective immediately, after only 22 months, blaming weak sales results. He was replaced on an interim basis by the company’s longtime former CEO, Michael Kowalski.[38] Shortly before his abrupt departure, Cuménal had appointed former Coach designer Reed Krakoff as the company’s new chief artistic officer. Although Krakoff had had no previous experience with jewellery design, his previous success with Coach and “deep understanding of iconic American design” led to his appointment, with the hopes that Krakoff would be able to refresh the image of the brand.[39][40]

In April 2017, the company launched their Tiffany HardWear collection.[41]

In July 2017, it was announced that Bulgari veteran Alessandro Bogliolo would be taking over as CEO. Under his leadership, it was hoped that Tiffany & Co. could turn around slumping sales and capture a younger audience.[42]

Tiffany & Co. opened the Blue Box Cafe in New York City in November 2017.[43] Also in November 2017, the company launched their Home & Accessories line.[44]

In March 2018, the company opened the Jewelry Design and Innovation Workshop, a new 17,000-square-foot atelier.[43]

In May 2018, Tiffany launched their Paper Flowers Collection, designed by Reed Krakoff.[45]

In September 2018, Tiffany launched their Paper Flowers collection in Asia.[46] That same month, the company debuted a new proprietary engagement ring design called the Tiffany True.[47]

In August 2019, Tiffany launched their first men’s jewelry collection in October of the same year.[48] The line was developed by Reed Krakoff.[49]

In October 2019, Tiffany opened a new brand exhibition in Shanghai, China called “Vision & Virtuosity”.[50] Later that month, the company removed an online advertisement after it was accused of portraying support for the 2019–20 Hong Kong protests and potentially jeopardizing its business in China.[51]

In November 2019, LVMH announced its purchase of Tiffany & Co for $16.2 billion, $135 per share.[52] The deal was expected to close by June 2020.[53]

Tiffany opened its first store in New Delhi, India on 3 February 2020.[54]

After LVMH decided to cancel the pending purchase of Tiffany in September 2020, Tiffany filed suit, asking the court to compel the purchase or to assess damages against the defendant; LVMH planned to counter sue, alleging that mismanagement had invalidated the purchase agreement.[55] In mid-September 2020, a reliable source told Forbes (magazine) that LVMH had decided to cancel the deal because Tiffany was paying millions in dividends to shareholders despite financial losses during the pandemic. Some US$70 million had already been paid by Tiffany, with an additional US$70 million to be paid in November 2020.[56] LVMH filed a counterclaim against the court action commenced by Tiffany; a statement issued by LMVH blamed Tiffany’s mismanagement during the pandemic and claimed that it was ‘burning cash and reporting losses'”.[57] In late October 2020, LVMH announced that it had agreed to buy Tiffany & Co. at a reduced price of almost $16 billion, and lowered price from $135 per share to $131.5 per share. The court cases would be set aside.[58][59] In December 2020, Tiffany & Co’s shareholders approved a $15.8 billion deal with LVMH.[60] The deal closed on January 7, 2021.[61]

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