Tiffany & Company
) is well positioned to support robust sales and earnings growth in
the long run by leveraging capital investments made over the past
several years in distribution, manufacturing and diamond sourcing
processes. Moreover, with nearly half of the total sales generated
internationally, we believe that the company is well diversified
from a regional perspective as well.
Tiffany remains committed to attain long-term objectives of at
least 15% earnings growth and a 10% to 12% sales increase annually.
Moreover, the company's long-term objective is to attain ROA of at
least 10% and ROE of at least 15%.
The company holds a significant position in the world jewelry
market due to its distinctive brand appeal. We believe that the
company intends to expand its distribution network by adding stores
in both new and existing markets. The company is focused on opening
smaller stores that offer selected collections of lower priced
higher-margin products, which in turn boosts store productivity.
Tiffany concentrates on improving sales per square foot through an
increase in customer traffic and converting them into potential
buyers by targeted advertising, ongoing sales training and
Tiffany's strong fundamentals and strategic approach facilitated
it to post impressive first-quarter 2014 results, wherein earnings
of 97 cents a share beat the Zacks Consensus Estimate of 77 cents
and the prior-year quarter earnings of 70 cents. Results benefited
from higher sales and improved operating margin. Net sales of
$1,012.1 million grew 13% from the prior-year quarter, and
surpassed the Zacks Consensus Estimate of $953 million.
Estimates have been showing an uptrend since the earnings
announcement. This is evident from the movement witnessed in the
Zacks Consensus Estimate that increased 3.1% to $4.28 for fiscal
2014 in the past 60 days. For fiscal 2015, the Zacks Consensus
Estimate jumped 2.3% to $4.85 in the same period.
Tiffany, which competes with
Signet Jewelers Limited
), carries a Zacks Rank #2 (Buy).
Other Stocks to Consider
Other better ranked retail stocks that look promising include
Michael Kors Holdings Limited
), both sporting a Zacks Rank #1 (Strong Buy).
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TIFFANY & CO (TIF): Free Stock Analysis
SIGNET JEWELERS (SIG): Free Stock Analysis
HANESBRANDS INC (HBI): Free Stock Analysis
MICHAEL KORS (KORS): Free Stock Analysis Report
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