Yahoo Finance Tiffany to present another lackluster quarter: Oppenheimer
Investors will see how Tiffany & Co. (TIF) is handling the current challenging environment when it reports Q3 results on Tuesday before the bell.
The high-end jeweler is getting hit with plenty of headwinds, including slowing global economic growth, a strong U.S. dollar, and weak Asian markets.
After a rough second quarter, another lackluster earnings report is expected for Q3. For the year, the stock is down nearly 30 percent. “It’s a market-share game to a certain extent. Tiffany is not the only luxury retailer in the United States and of course across the globe,” said Brian Nagel, who covers the stock for Oppenheimer.
Even so, the analyst is still favorable on Tiffany for the longer term. He has an “outperform” rating for the stock, with a price target of $110 a share.
“Tiffany is a 175-year-old brand now, and it does very well at the high-end [and] still is that brand people aspire to get into,” said Nagel.
Despite Tiffany’s weakness in the U.S. market, the analyst thinks the jeweler is holding up elsewhere in the world. “You've actually seen some strength in Japan. You've seen strength in Europe. China's been holding up OK,” he said.
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As for the improvements within Tiffany, Nagel thinks the retailer best known for its diamonds needs to work on both its high- and low-end offerings.
“One of the areas Tiffany has struggled in, which I think is important for the longer term viability of the company, is silver,” said Nagel. Tiffany must “reconnect with that more fashion-oriented consumer at the low end,” he suggested.
Analysts expect the company to report third-quarter earnings of $0.75 a share on revenue of about $974 million.
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