Manufacturing
The Company’s manufacturing facilities produce approximately 60% of Tiffany merchandise sold. The balance, including rose-gold and almost all non-jewelry items, are purchased from third parties from overseas.
Tiffany produces jewelry and silver goods in Mount Vernon, New York, Cumberland, Rhode Island, Lexington, Kentucky and silver hollowware in New Jersey. Other subsidiaries of the Company process, cut and polish diamonds at facilities outside the U.S.
The Company may increase the percentage of internally manufactured jewelry in the future, but it is not expected that Tiffany will ever manufacture all of its needs. Factors considered by management in its decision to outsource manufacturing include: product quality, gross margin, access to or mastery of various jewelry-making skills and technology, support for alternative capacity and the cost of capital investments.
Read more about this topic: Tiffany & Co.