Portfolio Management
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
Holiday Sales
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%.
Outlook
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.
| Symbol | Mutual Fund | Stake |
|---|---|---|
| VMCIX | Vanguard Mid Cap Index | 1.49% |
| VTSMX | Vanguard Total Stock Market Index | 1.42% |
| OPPAX | Oppenheimer Global | 1.21% |
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).
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