Industry experts believe that the luxury goods market is likely to remain healthy, courtesy of steady economic growth, higher consumer confidence and rising disposable income. Given this scenario, it will be wise to focus on some luxury goods’ stocks. Here we have highlighted one such stock Tiffany & Co. TIF, which holds a significant position in the world jewelry market due to its distinctive brand appeal.
This designer, manufacturer and retailer of jewelry and other items has displayed an impressive run in the bourses. A glimpse of Tiffany’s share price movement reveals that it has increased roughly 28% in the past six months comfortably outperforming the industry’s growth of 22%. Further, the stock is hovering close to its 52-week high of $137.97. There is no reason why this Zacks Rank #1 (Strong Buy) stock cannot breach that mark in the near term.
Tiffany remains focused on evolving its brand, enhancing omnichannel experience, solidifying position in core markets, increasing operating model efficiency and enriching overall organization. The company remains committed to elevating in-store experience and replenishing product portfolio.
Focus on renewing product portfolio is evident from recent launch of PAPER FLOWERS, which comprises solid collection in diamonds and platinum. The company is also looking at other revenue generating avenues, and this includes expansion of its watch business. The company also intends to expand distribution network by adding stores in both new and existing markets.
The company is steadily introducing new jewelry designs, new watch collection and fragrance, and additional jewelry SKUs. It also introduced “build-your-own program” on its website under which customers are allowed to personalize their own charm bracelets. Further, Tiffany is allowing customers to personalize their ring. The company also renewed its licensing agreement with Luxottica Group — slated to expire on Dec 31, 2027 — for the development, production and global distribution of sunglasses and prescription frames under its brand.
Certainly, Tiffany remains focused on delivering sustainable improvements in comps, operating margin and earnings. This is well reflected from its fiscal 2018 guidance. Management now anticipates fiscal 2018 net sales to increase by a high-single digit percentage on a reported and constant-exchange-rate basis and envisions earnings in the range of $4.50-$4.70, up from $4.13.
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Movado Group MOV delivered an average positive earnings surprise of 100.3% in the trailing four quarters. The stock sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Fossil Group FOSL delivered an average positive earnings surprise of 54.1% in the trailing four quarters. It carries a Zacks Rank #2 (Buy).
Canada Goose Holdings GOOS delivered an average positive earnings surprise of 73.1% in the trailing four quarters. It has a long-term earnings growth rate of 25.4% and a Zacks Rank #2.
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