Tiffany & Co. (TIF) released its holiday sales and updated its guidance for FY2014. Here’s what the news means for mutual fund investors.
Inside the News
The company reported worldwide holiday sales of $1.02 billion, a 1% drop from a year ago. Sales in the Americas region dropped 1%, sales in the Asia-Pacific region rose 10%, sales in Europe rose 9%, and other sales rose 14%.
For FY2014, the company is now expecting to see earnings between $4.15 and $4.20 per share. Previously. TIF expected to see earnings between $4.20 and $4.30 per share. On average, analysts expect to see EPS of $4.32.
Pullback May Spark Investor Interest
In a January 5th downgrade that we published, we noted that TIF was very expensive and had little upside at current levels. After today’s report, the stock is down over 11%, which could spark the interest of investors and fund managers. Although this pullback could be a good opportunity, investors should wait for the stock to bottom out before jumping in.
Mutual Funds to Watch
For investors seeking exposure to TIF, a mutual fund investment may be a good alternative to directly investing in the stock. The funds below currently own the largest stakes in the company.
|VMCIX||Vanguard Mid Cap Index||1.49%|
|VTSMX||Vanguard Total Stock Market Index||1.42%|
The Bottom Line
The funds listed above allow investors to gain exposure to TIF while remaining diversified. Investors interested in TIF may also be interested in Signet Jewelers (SIG).