Shares of Tiffany & Co. (TIF – Analyst Report) touched a new 52-week high of $88.88 on Nov 26, 2013 before closing at $88.02. The stock gained momentum on the back of the company’s better-than-expected third-quarter fiscal 2013 results and on an upbeat guidance for fiscal 2013. This jewelry retailer has amassed a year-to-date return of 51.4%.
The average volume of shares traded over the last 3 months was approximately 1,022.8K. Moreover, the company currently trades at a forward P/E of 24.31x, a 2.9% premium to the peer group average of 23.62x. The last traded price is approximately 9% above the Zacks Consensus average analyst price target of $80.77. Additionally, the company’s long-term estimated earnings per share (EPS) growth rate is 13.5%.
Investors are optimistic about this Zacks Rank #2 (Buy) stock as it posted 73 cents per share that surpassed the Zacks Consensus Estimate of 58 cents and soared 49% from 49 cents in the prior-year quarter. The earnings growth was driven by higher sales and an improved operating margin. Tiffany posted net sales of $911.5 million in the said quarter, up 7% year over year on the back of healthy performance of stores in the Americas, Asia-Pacific and Europe regions and due to new collection launches. Total revenue also came ahead of the Zacks Consensus Estimate of $892 million.
Buoyed by stronger-than-anticipated quarterly results, management raised its earnings guidance. Tiffany now projects fiscal 2013 earnings between $3.65 and $3.75 per share, up from its previous forecast of $3.50 to $3.60. Moreover, the company expects total net sales growth in mid single digits for fiscal 2013. In constant currencies, total net sales are projected to increase in the high single digits. Operating earnings is projected to grow at a rate higher than that of sales.
Tiffany’s history of positive earnings surprises also boosts investors’ confidence in the stock. Notably, the company has beaten the Zacks Consensus Estimate in the past 4 quarters by an average of 6.1%.
Apart from Tiffany, other retail stocks such as The Walt Disney Company (DIS – Analyst Report) Macy’s, Inc. (M – Analyst Report) and L Brands, Inc. (LTD – Analyst Report) achieved new 52-week highs of $71.69, $53.14 and $65.49 respectively, on Nov 26, 2013.
