UPDATE: Europe, Asia Drive Tiffany's Shinier Profit 30 May 08 By Andria Cheng NEW YORK (Dow Jones) -- Tiffany & Co. said Friday its first-quarter net income rose a better-than-expected 19% after higher demand in Europe and Asia helped make up for soft sales in the U.S. Tiffany also said it plans to open a new, smaller store format in the U.S. later this year as it expands the store opening of its namesake chain globally. Tiffany shares jumped 3.9% to $49.58 in late morning trading. Net income rose to $64.4 million, or 50 cents a share, from $54.1 million, or 39 cents, a year earlier. Sales of the 192-store chain in the quarter ended April 30 rose 12% to $668.1 million from $595.7 million and would have risen 8% without the benefit of currency translations. Analysts, on average, estimated the New York-based luxury jewelry retailer would earn 40 cents a share on sales of $647.6 million, according to FactSet Research. Sales at stores open at least a year rose 21% in Europe and 15% in Asia, driven by demand in areas from London and Italy to Hong Kong and China. They helped to offset flat sales in the U.S., the company's largest market. A slowing domestic economy has curtailed discretionary spending on jewelry and other accessories, impacting U.S. demand at upscale retailers such as Tiffany, analysts said. U.S. mall-based specialty retailer J. Crew Group Inc. (JCG), with stores only based in the U.S., saw its shares tumbling 21% Friday after it lowered full-year profit outlook, citing weak store traffic. Tiffany and retailers such as Coach Inc. (COH) have been expanding outside of the U.S. to diversify and lessen their concentration on the U.S. market. "Tiffany is becoming a truly global brand," said Pali Research analyst Stacey Widlitz, who has a buy rating on the stock. "The strength in international and the size of it is enough to offset however the U.S. consumer weakness is lasting. International consumers love this brand." Tiffany plans to open about 24 stores across the U.S., Asia and Europe this year in addition to its new concept. The new concept will be about 1500 square feet in size, about a third less in size compared against Tiffany's average store size, Widlitz said. Product offerings at the new concept won't have the bigger ticket item engagement focus, she said. First quarter sales have been driven by engagement rings in the U.S., silver jewelry outside of the U.S. or designer collection such as Elsa Peretti jewelry. The company's New York flagship store saw a 16% jump in same-store sales, driven by demand from foreign tourists. Branch suburban store sales declined 4% as the company experienced soft sales of items below $500. For the year, Tiffany (TIF) kept its forecast of profit rising to $2.80 to $ 2.90 a share on a 10% sales gain. Analysts surveyed by FactSet were looking for profit of $2.76 a share. Worldwide sales so far in May have met the company's expectations, Tiffany said. While U.S. same-store sales for the year are expected to rise for the year, the company said it expects second-quarter U.S. sales to decline, which will pressure profit in that period. It expects a small increase in comparable store sales in the third quarter followed by a mid-single digit gain in the fourth quarter. The company also said it will continue to increase retail prices as necessary to mitigate the increase in precious metal prices. (END) Dow Jones Newswires
Tiffany "market outperform," target price raised - update 1:32p.m. - JMP Securities NEW YORK, June 2 (newratings.com) - Analysts at JMP Securities maintain their "market outperform" rating on Tiffany & Co (TIF), while raising their estimates for the company. The target price has been raised from $45 to $55. In a research note published this morning, the analysts mention that the company has posted its F1Q08 results ahead of expectations. Tiffany has raised its EPS guidance for FY08 from $2.75-$2.85 to $2.80-$2.90, reflecting the recent earnings upside. Tiffanyâs stores are benefiting from the foreign tourist spending in New York and in other major regions, including San Francisco and Chicago, the analysts say. The company is likely to face easier comparisons during 2H, JMP Securities adds. The EPS estimates for FY08 and FY09 have been raised from $2.66 to $2.86 and from $3.07 to $3.22, respectively. http://www.newratings.com/en/main/c...&isin=US8865471085&id=1755252&option=headline
Tiffany (NYSE: TIF) Hedged Price Watch Alert Posted on Wednesday, June 04, 2008 8:07 AM Tiffany (NYSE: TIF) closed yesterday at $47.97. So far the stock has hit a 52-week low of $32.84 and 52-week high of $57.34. Tiffany stock has been showing support around 46.95 and resistance in the 48.81 range. Technical indicators for the stock are BULLISH and S&P gives TIF a very positive 5 STAR (out of 5) strong buy rating. TIF appears on the Investors Observer Analysts Favorites list. For a hedged play on this stock, look at a Nov '08 50 covered call (TIF KJ) for a net debit in the $43.67 area. That is also the break even stock price for this trade. This covered call has a 171 day duration, provides 8.96% downside protection and a 14.50% assigned return rate for a 30.94% annualized return rate (comparison purposes only). A lower cost hedged play for this stock would use a longer term call option in place of the covered call stock purchase. To use this strategy look at going long the TIF Jan '09 40 Call (VFF AH) and selling the Nov '08 50 call (TIF KJ) for a $6.55 debit. The trade has a 171 day life and would provide 2.96% downside protection and a 52.67% assigned return rate for an 112.00% annualized return rate (for comparison purposes only). Tiffany has a current annual dividend yield of 1.40% http://www.marketintelligencecenter.com/articles/627434
TIF is a good value at current level below historical average multiples. TIF (Nyse) will hit $55 within some weeks
Tiffany (TIF) outperforms the US equity market after excellent results ( August 28, 2008) Even today TIF is up: +1.68% $44.67