Research Desk Line-up: Signet Jewelers Post Earnings Coverage

LONDON, UK / ACCESSWIRE / June 13, 2017 / Pro-Trader Daily publishes post-earnings coverage on Tiffany & Co. (NYSE: TIF) following the Company's disclosure of its financial results for the first quarter fiscal 2017 on May 24, 2017. The designer and retailer of fine jewelry outperformed earnings expectations. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member's account at:

http://protraderdaily.com/register/

Get more of our free earnings reports coverage from other constituents of the Jewelry Stores industry. Pro-TD has currently selected Signet Jewelers Limited (NYSE: SIG) for due-diligence and potential coverage as the Company announced on May 25, 2017, its financial results for Q1 FY18 which ended on April 29, 2017. Register for a free membership today, and be among the early birds that get access to our report on Signet Jewelers when we publish it.

At Pro-TD, we make it our mission to bring you news that matter about the stock you follow. Today, our research desk covers a blog story on TIF; also brushing on SIG. With the links below you can directly download the report of your stock of interest free of charge at:

http://protraderdaily.com/optin/?symbol=TIF

http://protraderdaily.com/optin/?symbol=SIG

Earnings Reviewed

For the three months ended April 30, 2017, Tiffany's worldwide net sales rose 1% to $899.6 compared to net sales of $891.3 million in Q1 2016, driven by growth in Asia/Pacific and an increase in the wholesale sale of diamonds, and comparable store sales were 3% below the prior year. The Company's revenue numbers lagged behind analysts' estimates of $914.7 million.

During Q1 2017, Tiffany's gross margin increased to 62.0% from 61.2% in Q1 2016, primarily reflecting favorable product input costs and a shift in sales mix toward higher margin fashion jewelry products, partly offset by increased wholesale sales of diamonds. The Company's SG&A expenses as a percentage of net sales were 45.8% in the reported quarter versus 46.1% in the prior year's same period. Tiffany's earnings from operations as a percentage of net sales was 16.2% in Q1 2017 compared with 15.1% in Q1 2016.

Tiffany reported net earnings of $93 million, or $0.74 per diluted share, for Q1 2017 compared with net earnings of $87 million, or $0.69 per diluted share, in Q1 2016. The Company's earnings surpassed Wall Street's expectations of $0.70 per share.

Segment Results

During Q1 2017, Tiffany's sales in the Americas totaled $392 million, down 3% on a y-o-y basis, and comparable store sales declined 4%. The region's sales results were geographically mixed across the region, and management attributed the overall sales declines to lower spending by both foreign tourists and local customers.

In the Asia/Pacific region, Tiffany's total sales of $257 million grew 8% on a y-o-y basis in the reported quarter, while comparable store sales declined 3%. Management attributed total sales growth to increased wholesale sales and the effect of stores opened in the past year, while comparable store sales were affected by strong growth in mainland China and softness in other markets. On a constant-exchange-rate basis, Asia/Pacific region total sales rose 9% and comparable store sales declined 2%.

For Q1 2017, Tiffany's sales in Japan totaled $128 million down 2% on a y-o-y basis, and comparable store sales declined 1%. The Company stated the decline in sales was driven by lower spending by Chinese tourists. On a constant-exchange-rate basis, Japan's total and comparable store sales declined 3% and 1%, respectively.

In Europe, Tiffany's total sales declined 3% to $94 million, while comparable store sales also declined 3%. On a constant-exchange-rate basis, total sales and comparable store sales rose 4% and 3%, respectively.

Store Update

During Q1 2017, Tiffany did not open any Company-operated stores, yet it shut operation on three Company-operated stores. As on April 30, 2017, the Company operated 310 stores worldwide, with 124 stores in the Americas, 84 in Asia/Pacific, 54 in Japan, 43 in Europe, and 5 in the UAE compared to 308 stores being operated in the year ago period with 124 in the Americas, 81 in Asia/Pacific, 55 in Japan, 43 in Europe, and 5 in the UAE.

Balance Sheet

Tiffany finished Q1 2017 with cash and cash equivalents and short-term investments totaling $960 million at April 30, 2017, up from $790 million a year ago. The Company's total debt (short-term and long-term) as a percentage of stockholders' equity was 35% at April 30, 2017, versus 37% in the year ago same period. Tiffany's net inventories at April 30, 2017 were 5% lower on a y-o-y basis.

During Q1 2017, Tiffany repurchased approximately 123,000 shares of its Common Stock at an average price of approximately $93 per share and a total cost of $11.5 million. At April 30, 2017, $299 million remained available for repurchases under a program that authorizes the repurchase of up to $500 million of the Company's Common Stock and that expires on January 31, 2019.

Outlook

For the fiscal year ending January 31, 2018, Tiffany is forecasting worldwide net sales increasing over the prior year by a low-single-digit percentage as reported and on a constant-exchange-rate basis and net earnings per diluted share to grow by a high-single-digit percentage over FY16's earnings per diluted share of $3.55.

For FY17, the Company is also projecting net cash provided by operating activities of approximately $700 million and free cash flow of approximately $450 million.

Stock Performance

Tiffany's share price finished yesterday's trading session at $93.14, sliding 1.64%. A total volume of 2.42 million shares have exchanged hands, which was higher than the 3-month average volume of 1.79 million shares. The Company's stock price soared 4.82% in the last three months, 9.50% in the past six months, and 50.79% in the previous twelve months. Additionally, the stock rallied 20.29% since the start of the year. Shares of the Company have a PE ratio of 25.79 and have a dividend yield of 2.15%. The stock currently has a market cap of $11.61 billion.

Pro-Trader Daily:

Pro-Trader Daily (Pro-TD) produces regular sponsored and non-sponsored reports, articles, stock market blogs, and popular investment newsletters covering equities listed on NYSE and NASDAQ and Canadian stocks. PRO-TD has two distinct and independent departments. One department produces non-sponsored analyst certified content generally in the form of press releases, articles and reports covering equities listed on NYSE and NASDAQ and the other produces sponsored content (in most cases not reviewed by a registered analyst), which typically consists of compensated investment newsletters, articles and reports covering listed stocks and micro-caps. Such sponsored content is outside the scope of procedures detailed below.

PRO-TD has not been compensated; directly or indirectly; for producing or publishing this document.

PRESS RELEASE PROCEDURES:

The non-sponsored content contained herein has been prepared by a writer (the "Author") and is fact checked and reviewed by a third party research service company (the "Reviewer") represented by a credentialed financial analyst, for further information on analyst credentials, please email contact@protraderdaily.com. Rohit Tuli, a CFA® charterholder (the "Sponsor"), provides necessary guidance in preparing the document templates. The Reviewer has reviewed and revised the content, as necessary, based on publicly available information which is believed to be reliable. Content is researched, written and reviewed on a reasonable-effort basis. The Reviewer has not performed any independent investigations or forensic audits to validate the information herein. The Reviewer has only independently reviewed the information provided by the Author according to the procedures outlined by PRO-TD. PRO-TD is not entitled to veto or interfere in the application of such procedures by the third-party research service company to the articles, documents or reports, as the case may be. Unless otherwise noted, any content outside of this document has no association with the Author or the Reviewer in any way.

NO WARRANTY

PRO-TD, the Author, and the Reviewer are not responsible for any error which may be occasioned at the time of printing of this document or any error, mistake or shortcoming. No liability is accepted whatsoever for any direct, indirect or consequential loss arising from the use of this document. PRO-TD, the Author, and the Reviewer expressly disclaim any fiduciary responsibility or liability for any consequences, financial or otherwise arising from any reliance placed on the information in this document. Additionally, PRO-TD, the Author, and the Reviewer do not (1) guarantee the accuracy, timeliness, completeness or correct sequencing of the information, or (2) warrant any results from use of the information. The included information is subject to change without notice.

NOT AN OFFERING

This document is not intended as an offering, recommendation, or a solicitation of an offer to buy or sell the securities mentioned or discussed, and is to be used for informational purposes only. Please read all associated disclosures and disclaimers in full before investing. Neither PRO-TD nor any party affiliated with us is a registered investment adviser or broker-dealer with any agency or in any jurisdiction whatsoever. To download our report(s), read our disclosures, or for more information, visit http://protraderdaily.com/disclaimer/.

CONTACT

For any questions, inquiries, or comments reach out to us directly. If you're a company we are covering and wish to no longer feature on our coverage list contact us via email and/or phone between 09:30 EDT to 16:00 EDT from Monday to Friday at:

Email: contact@protraderdaily.com

Phone number: (917) 341.4653

Office Address: Mainzer Landstrasse 50 Frankfurt am Main, Germany 60325

CFA® and Chartered Financial Analyst® are registered trademarks owned by CFA Institute.

SOURCE: Pro-Trader Daily