Tiffany & Company
) recently filed a lawsuit in the U.S. District Court in New York
Costco Wholesale Corporation
), alleging that the warehouse club operator has for many years
been selling counterfeit diamond engagement rings by
misrepresenting them under the jewelry retailer's brand name.
Tiffany has dissociated itself from Costco, claiming that the
rings are not its, nor are they manufactured, approved or
licensed by it. The company has charged Costco of trademark
infringement, forging, unjust competition, inflicting harm on its
business reputation, deceptive advertising and fraudulent
The issue relates back to Nov 2012, when a customer happened
to come across in-store signs at a Costco outlet in Huntington
Beach, Calif., which claimed to be selling Tiffany's diamond
engagement rings, and intimated Tiffany about this. An
investigation followed, revealing that the rings offered by
Costco for sale were in fact falsely represented as being that of
Founded in 1837 and based in New York, Tiffany through its
subsidiaries, is engaged in the designing, manufacturing and
retailing activities of fine jewelry, which includes gemstone
jewelry and gemstone band rings, diamond rings and wedding bands,
gold or platinum jewelry, as well as sterling silver jewelry.
Tiffany is slated to release its fourth quarter and fiscal
2012 results on Mar 22, 2013. The current Zacks Consensus
Estimates for the quarter and fiscal year stand at $1.37 and
$3.21 per share, respectively. The stock currently holds a Zacks
Rank #5 (Strong Sell).
Not all the jewelry retailers are performing as
disappointingly as Tiffany.
Signet Jewelers Limited
) is expected to continue with its positive earnings surprise
trend, and holds a Zacks Rank #2 (Buy). Another retail stock that
look promising and is expected to continue with its upbeat
Gildan Activewear Inc.
), which also carries a Zacks Rank #2 (Buy).
COSTCO WHOLE CP (COST): Free Stock Analysis
GILDAN ACTVWEAR (GIL): Free Stock Analysis
SIGNET GRP PLC (SIG): Free Stock Analysis
TIFFANY & CO (TIF): Free Stock Analysis
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