tiffanynecklaces221

We have continued to upscale our product TIFF Blue box bracelet to our distributors and have been working with our distributors to sell our products primarily via stand-alone stores and store-in-stores and not through counters and concessions as we TIFF Blue Box Charm and Chain that stand-alone stores and store-in-stores strengthen our brand image with consumers. In this regard, our distributors have collectively closed more than 200 counters and concessions.

Cost of Sales and Gross Profit Margin (amounts in thousands, in U.S. Dollars, except for percentages) During the third quarter of 2010 we began to fully TIFF Blue heart lock charm and bracelet our manufacturing to third parties. Our products are manufactured on our behalf, based on orders for our products that we receive from our distributors, which orders are based on the clothing samples we design and create.

Historically, we outsourced to two types of manufacturers: (1) sub-contractors, which require us to provide them with the raw materials for TIFF box lock pendant products, and (2) O. M. manufacturers, which supply their own raw materials. Beginning in 2009, we have shifted our outsourcing entirely to O. As we shifted away from sub-contract manufacturing and manufacturing product ourselves entirely to O.