Zacks Investment Research upgraded
Tiffany & Company
) to a Zacks Rank #1 (Strong Buy) on Jul 12, 2014.
Why the Upgrade?
We believe Tiffany is well positioned to support 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.
The company, which competes with
Signet Jewelers Limited
), 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
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 customer-oriented
Tiffany's strong fundamentals and strategic approach led to
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.
Following a robust first quarter, Tiffany raised its earnings
expectations. The company now projects fiscal 2014 earnings between
$4.15 and $4.25 per share against $4.05-$4.15 expected earlier.
Management now projects total net sales growth in a high
single-digit percentage for fiscal 2014 with growth expected across
Strong results and an upbeat guidance led to an uptrend in the
Zacks Consensus Estimate, which increased 2.9% to $4.28 for fiscal
2014 and 2.1% to $4.85 for fiscal 2015 in the past 60 days.
Other Stocks to Consider
Other retail stocks that look promising include
Columbia Sportswear Company
), both with a Zacks Rank #1 (Strong Buy).
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TIFFANY & CO (TIF): Free Stock Analysis
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