Will Tiffany (TIF) Manage To See Higher Earnings In Q1?
Zacks Investment Research | May 20, 2018 10:50PM ET
Tiffany & Co. (NYSE:TIF) is slated to report first-quarter fiscal 2018 results on May 23. In the trailing four quarters, this designer, manufacturer and retailer of jewelry and other items has outperformed the Zacks Consensus Estimate by an average of 4.5%. In the last reported quarter, the company delivered a positive earnings surprise of 2.5%.
Investors are counting on another estimate beat by Tiffany in the to-be-reported quarter. Let’s delve deep and take a look at the factors that will be influencing the results.
Here Are the Deciding Factors
Tiffany is well positioned to augment its top and bottom-lines performance in the long run by leveraging capital investments made over the past several years in distribution, manufacturing and diamond sourcing processes. The company is also looking at other revenue generating avenues. It also intends to expand distribution network by adding stores in both new and existing markets. The company is focused on opening smaller stores that offer selected collections of lower priced higher-margin product, which in turn boosts store productivity.
The company is gradually coming up with new jewelry designs, range of watches and fragrance. It has also introduced “build-your-own program” on its website under which customers are allowed to personalize their charm bracelets. Also, Tiffany is allowing customers to customize rings. Apart from this, the company 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.
However, despite the company’s efforts to boost the top line, rising SG&A expenses are likely to dent the operating margin. In this regard, we note that management expects fiscal 2018 SG&A expenses to increase at a rate higher than sales on account of increased spending on technology, marketing communications, visual merchandising, digital and store presentations. We noted that in the first, second, third and fourth quarter of fiscal 2017, SG&A expenses had increased 0.2%, 3.7%, 3.3% and 2.2%, respectively.
Tiffany & Co. Price, Consensus and EPS Surprise
Original post
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.