Buoyed by strong first-quarter fiscal 2013 results, shares of Tiffany & Company (TIF) recorded a new 52-week high of $81.25 yesterday, before closing at $79.22, and rising approximately 35% year to date. Based on the current price, Tiffany is 7.5% above the Zacks Consensus average analyst price target of $73.71.
It currently trades at a forward P/E of 22.9x, a 9.6% premium to the peer group average of 20.9x. However, the company’s long-term estimated EPS growth rate is 13.4%, higher than the peer group average of 9.4%.
Strong demand in the Asia-Pacific region facilitated Tiffany to post first-quarter fiscal 2013 earnings of 70 cents a share that handily surpassed the Zacks Consensus Estimate of 53 cents and jumped 9.4% year over year.
Net sales for this Zacks Rank #3 (Hold) stock increased 9% year over year to $895.5 million during the quarter and also surpassed the Zacks Consensus Estimate of $862 million. In constant currencies, net sales jumped 13%, whereas comparable-store sales climbed 8%.
Another jewelry retailer, Signet Jewelers Limited (SIG), also posted healthy first-quarter results. The company’s quarterly earnings of $1.13 per share surpassed the Zacks Consensus Estimate by a penny and jumped approximately 18% year over year.
Getting back to Tiffany, the company stood by its earlier guidance and continues to project fiscal 2013 earnings in the range of $3.43 – $3.53 per share, reflecting year-over-year growth of 6% – 9%.
Moreover, total net sales are expected to increase in the mid-single digits in the second quarter and fiscal 2013.
Other Stocks to Consider
Until any further upgrade in Tiffany’s Zacks Rank, the other well performing stock in the non-food retail, wholesale sector includes Big 5 Sporting Goods Corp. (BGFV), which carries a Zacks Rank #1 (Strong Buy). The Gap Inc. (GPS) carrying a Zacks Rank #2 (Buy) is also worth considering.
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