212 755 8000
March 28, 2006
Dear Stockholder:
We invite you to attend the Annual Meeting of Stockholders of Tiffany & Co. on Thursday May 18, 2006, at 10:00 a.m. in the Roof/Penthouse of the St. Regis Hotel, 2 East 55th Street at fifth Avenue, New York, NY. As a stockholder, your participation in the affairs of Tiffany & Co. is important, regardless of the number of shares that you hold. Therefore, whether or not you are able to personally attend, please vote your shares as soon as possible by completing and returning the enclosed proxy card, by calling the telephone number listed on the card or by accessing the Internet site to vote electronically. This report marks a change in format for us, in which you will now find our Annual Report on Form 10-K followed by our Proxy Statement for the 2006 Annual Meeting within a single binding. Our objective is to provide current and potential stockholders with all the necessary information in one convenient location. We hope you find it helpful. fiscal 2005 was a year of solid financial performance. We recorded strong increases in sales and operating earnings, and our investors benefited from a 20% increase in Tiffany's stock price. Net sales increased 9% to $2.4 billion thanks to 5% comparable store sales growth, new store openings and stronger sales in Japan as the year progressed. In the U.S., we opened four TIFFANY & CO. stores - in Carmel and Pasadena, California, San Antonio, Texas and Naples, florida. In Japan, we added stores in Osaka and Yokohama, and five underperforming locations were closed. We also opened a store in Brisbane, Australia and a third location in Paris, France. We launched e-commerce sites in Canada and Japan, adding to our successful Internet businesses in the U.S. and the U.K. In specialty retail, we opened four IRIDESSE stores, which offer exclusive and fashionable pearl jewelry at affordable prices. We also opened three LITTLE SWITZERLAND stores to serve the Caribbean tourist market. It was another very successful year for our product development efforts. We introduced a wide range of new designs and collections, creating both excitement and broadening the appeal of our merchandise assortment. Notable successes included the platinum and diamond SWING collection and the extension of the LEGACY ring collection featuring diamonds and colored stones. The highly recognizable and popular 1837 and ATLAS collections contributed importantly to the growth of gold and silver jewelry sales.

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