) just releases sales update for the critical holiday period
announcing 4% growth and reiterating their FY earnings
The numbers were less than street expected and stock is trading
down this AM. Punishing Tiffany for this slight miss is an
opportunity for those who don't own this top luxury brand and
core play for any global consumer or luxury brand index.
The "Emerging Money Global Luxury Index" (EMGLI) counts
Tiffany as a core member due to the demand for jewelry out of
We have talked at length why luxury goods spending is only
going to picking up steam in emerging markets with the
demographics shifting so much of the wealth to younger
The rapidly expanding move in "A" class and "B" class segments
means there are more and more buyers as well.
Consensus calls for global Luxury goods sales to grow 10% and
EPS to expand 14% in 2014.
China is now the largest percentage of the growth in luxury
and is forecasted to be 40% of the entire luxury goods market by
Tiffany's multiple by historic standards looks stretched
relative to itself. At 25X current and 24Xe'14, Tiffany
trades in excess of the average 18-19X of the last 5years.
Relative to its peer group $TIF also expensive by about 10%
but with the multiple expansions has been margin expansion and
Take a look at the new "super-cycle" in emerging markets that
is unfolding in the "Luxury" sector.