Leading luxury brand, Tiffany & Company (TIF - Free Report) announced the opening of its first wholly owned retail store in Moscow, Russia. The two-level, 4,520 square feet store will be located at the GUM department store and is scheduled to open in the first quarter of fiscal 2014.
The move is in line with the company's strategic initiative to expand in regions which provide ample growth opportunities. The location is a perfect fit for Tiffany as the GUM department store is the ultimate luxury shopping paradise in Moscow besides being an art and culture hub.
The company’s store expansion plans signify the increasing demand for Tiffany’s products in international markets. Moreover, its exclusive line of fine jewelry sets it apart from other jewellery retailers like Signet Jewelers Limited (SIG - Free Report) and Zale Corporation .
This Zacks Rank #3 (Hold) stock plans to add a net of 14 stores in fiscal 2013 including 6 in the Americas, 7 in Asia-Pacific, 3 in Europe and closing 1 location each in Japan and Taiwan.
As of Apr 30, 2013, the company operated 275 stores (115 in the Americas, 66 in Asia-Pacific, 55 in Japan, 34 in Europe and 5 in the U.A.E.).
Going forward, Tiffany continues to project fiscal 2013 earnings between $3.43 and $3.53 per share, reflecting year-over-year growth of 6% – 9%. However, management expects second-quarter earnings to remain flat with the prior-year quarter.
Tiffany now expects total net sales growth in the mid-single digits for fiscal 2013. In constant currencies, total net sales are projected to increase in the high-single-digits. For the second quarter too, sales are expected to rise in the mid-single digits.
Other Stock to Consider
Until any further upgrade in Tiffany's Zacks Rank, the other well performing stock in the non-food retail, wholesale sector includes Big 5 Sporting Goods Corp. (BGFV - Free Report) , which carries a Zacks Rank #1 (Strong Buy).