Signet Jewelers Ltd

Signet Jewelers (NYSE:SIG) stock dropped over 14% in the morning trade following the company’s weak performance in the first quarter of fiscal 2021.

Wells Fargo analyst Ike Boruchow downgraded Signet stock to “underweight” from “equal weight.” Also, analysts cut the target price to $12 from $16.

Signet Jewelers posted better-than-expected fiscal 2020 third-quarter results today, marking its eighth consecutive quarter of beating analysts’ estimates.

Signet Jewelers plans to announce its Q3 of fiscal 2020 earnings before the markets open on December 5. We expect its revenues and earnings to be subdued.

Tiffany stock surged after the company confirmed on October 28 that LVMH Moët Hennessy – Louis Vuitton had made an acquisition offer.

Signet stock closed about 27% higher. The company’s second-quarter results beat analysts’ forecast. Investors should use the recovery in the stock to exit.

Signet Jewelers (SIG) stock is expected to benefit from its better-than-expected performance in the first quarter of fiscal 2020.

On June 6, Signet Jewelers (SIG) posted better-than-expected fiscal 2020 first-quarter results.

Signet Jewelers (SIG) is scheduled to announce its first-quarter results before the markets open on June 6.

Tiffany (TIF) and Signet Jewelers (SIG) fell 6.8% and 11.9%, respectively, on May 13.

On April 3, Signet Jewelers (SIG) posted better-than-expected earnings results for the fourth quarter of fiscal 2019.

Signet Jewelers (SIG) is expected to report weak fourth-quarter results on April 3.

On January 18, Tiffany (TIF) reported weaker-than-expected sales numbers for the key holiday season.

Among the 28 analysts covering Tiffany stock, 16 have given it “buys,” and 12 have given it “holds.”

Shares of Tiffany & Co. (TIF) and Signet Jewelers (SIG) have taken significant hits recently due to a variety of factors.

Signet Jewelers’ (SIG) reported net sales of $1.19 billion came in ahead of analysts’ estimate of $1.16 billion.

Of the 28 analysts providing recommendations on Tiffany (TIF) stock, 16 analysts maintain a “buy” rating, 11 analysts suggest a “hold,” and one analyst has a “sell” rating.

Tiffany (TIF) and Signet Jewelers (SIG) have impressed investors with their financial performances in the first half of 2018.

On August 30, Signet Jewelers (SIG) shares were trading ~15% higher during the pre-market session following its strong second fiscal quarter results.

Tiffany’s (TIF) fiscal second-quarter EPS of $1.17 rose 27.2% YoY and handily surpassed analysts’ expectation of $1.01.

Signet Jewelers is set to report its second fiscal quarter earnings on August 30. Analysts expect Signet Jewelers to report net sales of $1.3 billion.

Signet Jewelers (SIG) reported its fiscal first quarter 2019 results on June 6, and the stock rose 18.5%.

Most of the analysts providing recommendations for Signet Jewelers (SIG) stock are maintaining a “hold” rating.

Most analysts maintain a favorable outlook on Tiffany & Company (TIF) stock.

Tiffany & Company (TIF) reported stronger-than-expected fiscal 4Q17 earnings results on March 16, 2018.

Of the 13 analysts providing the ratings on Signet Jewelers stock, 83.0% recommended a “hold” and 17.0% recommended a “buy.”

Signet Jewelers (SIG) reported sales of $2.3 billion in fiscal 4Q18. The company’s sales were ahead of analysts’ expectation.

Signet Jewelers (SIG) reported better-than-expected fiscal 4Q18 results on March 14. The company’s sales and EPS were ahead of analysts’ expectations.

The Illinois-based beauty retailer Ulta Beauty (ULTA) plans to announce its 4Q17 earnings results on March 15.

Tiffany’s (TIF) is scheduled to announce its fiscal 4Q17 results on March 16, 2018.

In this final series of our three-part series, we’ll be looking at the last seven stocks among the top 18 cheap stocks in the S&P 500 for 2018.

Signet Jewelers (SIG), the world’s largest diamond jewelry retailer, was the S&P 500’s second-best performer on November 27.

Wall Street analysts expect Tiffany & Co. (TIF) to report sales of $1.0 billion in fiscal 3Q17, which reflects a marginal improvement of 0.6% YoY.

Of the 13 analysts covering Signet Jewelers (SIG) stock, 69.0% recommended a “hold,” and 31.0% maintained a “buy” rating.

Signet Jewelers (SIG) stock fell 30.4% on November 21, reporting a loss of $0.10 per share in fiscal 3Q18. Analysts expected SIG to post a profit of $0.10 per share.

On September 12, Independent Research cut the target price for Altria Group (MO) to $68 from $70 with a “hold” rating.

Analysts have a consensus rating of 2.4 for Tiffany stock. Of the 26 analysts covering TIF, 46.0% recommend a “buy,” and 54.0% maintain a “hold” as of August 18, 2017.

Tiffany (TIF) will report its fiscal 2Q17 earnings on August 24, 2017. The stock has risen 13.7% YTD as of August 18 and has outperformed Signet Jewelers (SIG) and the S&P 500.

Lower sales and increased competition are pressuring jewelry retailers’ profitability, while adverse currency movements are putting dents in company margins.

Signet’s (SIG) margins have been hampered by lower sales and increased promotions.

On a year-to-date basis, Signet stock has fallen ~43% as of June 6, 2017, making it one of the worst performers among S&P 500 (SPX) stocks.

Tiffany (TIF) reported its fiscal 1Q17 results on May 24, 2017. The company’s EPS (earnings per share) of $0.74 surpassed analysts’ estimate of $0.70.

Tiffany’s (TIF) fiscal 1Q17 sales of $0.9 billion fell short of Wall Street’s consensus estimate but rose ~1% driven by growth in fashion jewelry and increased sales in mainland China (FXI).

Of the 26 analysts covering Tiffany stock, 42.0% rated it a “buy” as of April 3, 2017, while 54.0% rated it a “hold,” and one (4.0%) rated it a “sell.”

Tiffany (TIF) disappointed investors with its comparable-store sales numbers in 1Q17. After results were announced, the company’s stock plunged ~9%.

On January 7, 2016, Signet Jewelers (SIG), the world’s largest retailer of diamond jewelry, announced its broad-based success in the holiday season with revenue of $1.9 billion.

As of January 8, 2016, Signet Jewelers was trading at the highest forward PE multiple compared to its peers, including Tiffany and Fossil Group.

Signet launched a new collection called Ever Us in October 2015. It’s meant to meet the need for jewelry that represents the bond between two people.

Tiffany is trading at a higher multiple than its peers Signet and Fossil and at a higher valuation relative to SPY and the Dow Jones Industrial Average.

Tiffany & Co. is a holding company that operates through its subsidiary companies. The most notable is Tiffany & Company, a jeweler and specialty retailer.

Since 2006, Tiffany’s margins have been on the higher side compared to its peers, including Signet Jewelers and Fossil, in the retail jewelry industry.

Tiffany & Co.’s Americas segment includes sales from company-operated retail stores in the United States, Canada, Mexico, and Brazil.

Tiffany is experiencing the negative effects of the strong US dollar. The dollar’s continued strengthening may lead to slower growth for the jewelry market.

Tiffany’s key strategic objectives for growth include expanding marketing communications, opening stores in key markets, and enhancing in-store experience.

Tiffany had total debt of $1.1 billion on its balance sheet in fiscal 2015, which for the company ended on January 31, 2015.

Trends shaping the jewelry industry include Increasing demand for branded jewelry and an increased focus on e-commerce sales.

In April 2015, Tiffany launched its vintage-inspired CT60 watch collection, considering the growth opportunities in the global luxury timepiece market.

Tiffany’s capital expenditure was 5.8% of its sales in fiscal 2015. Signet Jewelers, Fossil, and Pandora had capex-to-sales ratios of 3.8%, 2.7%, and 2.4%.

At the end of fiscal 2015, Tiffany had a total inventory of $2.4 billion and inventory turnover of 0.73x, implying potential low sales and excess inventory.

Tiffany has been increasing its advertising expenses. In fiscal 2015, it spent $284 million on advertising, marketing, and public and media relations.

Tiffany & Co. has presences to differing degrees in the Asia-Pacific, Japan, Europe, and Other regions.

Porter’s Five Forces model suggests that there are five forces that determine the attractiveness and long-term profitability of an industry or a sector.

Since it’s a luxury brand, Tiffany & Co.’s products are priced high, with no promotions. Thus, Tiffany products may be out of reach for many customers.

In the previous quarter, Signet reported an increase in profitability. In 2Q16, Signet reported gross and operating margins of 34.8% and 7.2%, respectively.

The Sharpe ratio can sometimes be unfavorable for stocks that have high upside volatility. To prevent this, we can use the Sortino ratio.

Signet Jewelers’ well-known, exclusive brands aim to influence consumers in their buying decisions. Sterling Jewelers thus provides 32% branded assortments.

Signet acknowledges the value of e-commerce growth and its ability to maximize in-store experiences. Signet has thus integrated its website with its stores.

Signet Jewelers operates under three divisions: the Sterling Jewelers division, the Zale division, and the UK Jewelry division.

Signet Jewelers operates through 100% owned subsidiaries with a presence in the US, the UK, and Canada. It has ~3,600 stores under various name brands.

Total retail jewelry sales in the US grew at a CAGR of 4.4%, reaching $74.7 billion in 2014. Fine jewelry sales grew at a CAGR of 5%, reaching ~$69 billion.

Signet Jewelers has taken on several merchandise initiatives in 2015. It expects its “Ever Us” offering to become a new trend in the jewelry industry.

Signet aims to advance its vertical integration, including the sourcing and manufacturing of rough diamonds, which should help improve its supply chain.

Signet Jewelers, the largest specialty retail jeweler in the US, the UK, and Canada, had a debt of $1.5 billion on its balance sheet in fiscal 2015.

Davidson Kempner lowered its position in Tiffany & Co. (TIF), which accounted for 0.68% of the fund’s 3Q14 portfolio.

Davidson Kempner added to its position in Allegion Plc (ALLE), which accounted for 0.82% of the fund’s 3Q14 portfolio.