Tiffany & Co

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.

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

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

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

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

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

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On Thursday, Tiffany posted its interim holiday sales results. The company’s worldwide net sales from November 1 to December 24 increased by about 1%–3%.

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

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.

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.

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

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

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.

Allegion provides security solutions for homes and businesses, employing more than 8,000 people and selling products in more than 120 countries across the world. Allegion reported third-quarter 2014 net revenues of $546.7 million, up 3.3% compared to the previous year.

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

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.

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Mondelez is a global snacking powerhouse and a world leader in biscuits, chocolate, gum, candy, coffee, and powdered beverages. It owns billion-dollar brands and reported net revenues of $8.4 billion.

Ingersoll-Rand is a global diversified firm. The company’s reported revenues increased 5% to $3,385 million, beating estimates by 6%. It expects revenues for full-year 2014 to increase by approximately 4%.

On June 4, Tiffany (TIF) posted mixed first-quarter results for the period ending April 30. The top line was slightly lower than analysts’ estimate.

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

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

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

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).

Tiffany’s international operations are vital to top-line growth. In fiscal 2016, US sales accounted for 42.3% of overall sales, while other countries made up 42.6%.

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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.

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

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

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

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

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

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.

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

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.

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