This is a summary of the third quarter fiscal 2007 earnings conference call conducted by Tiffany & Co. (TIF: chart) on November 30, 2007.

Management:
VP, Investor Relations: Mark Aaron
Executive VP and CFO: James Fernandez

Key Investor Issues:

- Net income jumped to $98.9 million, or 71 cents per share, from $29.1 million, or 21 cents per share, a year ago.
- Excluding a gain of 48 cents per share on the sale-leaseback of the company''s Tokyo flagship store, Tiffany earned 23 cents per share in the latest quarter.
- Sales increased 18% to $627.3 million from $531.8 million a year earlier, bolstered by a 9% rise in global same store sales.
- Tiffany lifted its outlook for fiscal 2007 to a range of $2.25 to $2.30 per share, excluding charges and gains, from prior guidance of $2.22 to $2.27 per share.

Third Quarter Highlights:

Net sales rose 18% on solid growth in most countries. The company also experienced wide ranging product categories sales growth in a wide range of price points. Gross margin was only slightly lower than last year and core SG&A expenses were well controlled.

Net earnings rose to 71 cents per diluted share compared with 21 cents in the prior year.

There were some meaningful items worth noting in the quarter, including the sale of the company’s Tokyo flagship store property which generated a sizeable gain, and a related contribution to the Tiffany & Co. Foundation.

US retail sales increased 12% in the third quarter largely driven by increased spending per transaction as well as an increase in the number of transactions.

An 8% increase in comp store sales was in line with the company’s high single digit expectation. From a price stratification viewpoint there was price related growth in a wide range from under $500 to over $50,000 but the greatest percentage of growth in sales and transactions was in the $4,000 to $50,000 range.

The 8% increase in US comps was on top of a 6% increase in last years third quarter.

The monthly trend fluctuated, starting the quarter with an 11% increase in August on top of a 6% increase in August 2006, followed by a 2% increase in September on top of a 7% increase and finishing the quarter with a 12% increase in October on top of a 4% prior year increase.

Geographically Tiffany posted good growth in most US regions.

Sales in the New York flagship store surged 25% in the quarter on top of a 13% increase last year, and the company is up 28% year to date with the increases coming from increased transactions and higher spending per transaction. The flagship stores increase far exceeded a 5% comp store sales increase at the company’s seven other stores in the New York region.

In October the company held an event in the flagship store that showcased the extraordinary pieces in the new Blue Book. It was an enormous success with sales substantially exceeding the level of last year’s Simply Spectacular event.

For all comparable US brand stores, a 4% sales increase was on top of a 4% increase last year.

It was no specific regional pattern, although the company noted that a slight increase in comps in California contrasted with the better than average increase in Florida.

Some branch stores with the largest percentage increases ranged from Bal Harbour and Orlando to Edina and Kansas City to Dallas and San Antonio to Bellevue and Palo Alto. The Pacific region, which includes Hawaii and Guam, continued to post year over year decline.

Customer Mix Analysis

The US sales increase in the quarter was evenly generated by higher sales to local customers and foreign tourists, of which European visitors represented the largest increase. For the New York flagship store, more than half of its 25% sales increase came from higher sales to those foreign tourists.