Tiffany & Co (NYSE: TIF)
Tiffany reported first quarter results on May 27th. Although the USD had an impact on their sales, the company reported stronger than expected results. For the quarter ending April 30, Tiffany and Co. posted earnings of $104.9 million, or 81 cents a share, compared with $ 125.6 million, or 97 cents a share, a year ago.
Tiffany had forecast a 30% earnings decline. Sales fell 4.9% to $962.4 million, coming in above the company’s March forecast for a 10% decline. Analysts were projecting 70 cents a share in earnings and $918.7 million in revenue, according to Thomson Reuters.
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TIF Technical analysis
Early in the day, prior to earnings, Tiffany was trading at $84. After earnings, shares jumped to a high of $96.33, up 13% closing at $94.54.
According to The Street, total sales in the Americas increased 3% and comp store sales rose 1% on top of an 8% comp increase in last year’s first quarter. This minimal sales growth in the Americas reflected an increase in domestic spending which was mostly offset by lower foreign tourist spending in the US, especially in New York, which can be attributed to the strength of the U.S. dollar. Tiffany & Co. also had strong sales growth in Canada and Latin America on a constant exchange rate basis. Performance in the Asia-Pacific region was mixed in the first quarter. On a constant exchange rate basis total sales in Asia increased 4% and comp store sales increased 2% compared with a 10% comp increase in last year’s first quarter. Strong sales growth was also achieved in China, Australia and Singapore, with softer sales in Hong Kong.
Besides adding new items to their collection, another catalyst for beating expectations were price increases.
Tiffany & Co Outlook
On May 27, Topeka Capital Markets reiterated their Buy rating for Tiffany with a price target of $100-$110. Tiffany’s shares were up in December 2014 with a high of $110.60 and come January they dropped sharply to the $82 to $91 range, down approximately 20% for the year. This upgrade from TCM is more in line with their 52 week high of $110.60 back in December.
Daily volume on Wednesday was 7.2 million shares traded.
Tiffany was founded in 1837 and is based out of New York, New York. When you mention the word Tiffany almost everyone thinks of diamonds. In addition to diamonds, the company designs and manufactures fine jewelry, gold, silver etc. They offer their products via various channels including internet, retail, ecommerce, catalog, business to business and wholesaling worldwide.