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Tiffany Records New High on Strong 1Q

Zacks Equity Research

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.

Read the Full Research Report on BGFV

Read the Full Research Report on GPS

Read the Full Research Report on TIF

Read the Full Research Report on SIG

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