We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Tiffany (TIF) Accepts Takeover Offer of Louis Vuitton Owner
Read MoreHide Full Article
Tiffany & Co. accepted the buyout offer of LVMH Moet Hennessy Louis Vuitton SE or LVMH. The owner of Louis Vuitton and Givenchy has entered into a deal to acquire the New York-based jewelry retailer for more than $16 billion. This takeover will provide LVMH a competitive edge in the fast-growing product categories and expand footprint in the U.S. luxury market.
LVMH’s latest offer was $135 a share in cash versus the earlier bid of $120 made in October. Following the news, shares of Tiffany, which competes with Signet (SIG - Free Report) , are up roughly 6% during the pre-market trading on Nov 25. So far in the year, shares of this Zacks Rank #3 (Hold) company have surged 55.9% compared with the industry’s rally of 39.4%.
Industry experts believe that the acquisition of Tiffany — which would become part of growing luxury portfolio comprising Bulgari, Christian Dior, Dom Perignon, Fendi, Sephora and Guerlain — will add sheen to LVMH’s jewelry and watch segments. Meanwhile Tiffany, which operates more than 300 stores worldwide, will also gain from LVMH’s prominent presence in European and Asian markets.
Of late, Tiffany has been grappling with sluggish demand from foreign tourists, adverse currency fluctuations and disruptions in Hong Kong. Moreover, the impact of escalating trade tensions between the United States and China cannot be ruled out. The impact of these headwinds was evident in the company’s second-quarter fiscal 2019 results, wherein both the top and the bottom lines declined year over year.
We also note that comparable sales fell 4% during quarter, reflecting declines of 4%, 3%, 1% and 6% in the Americas, Asia-Pacific, Japan and Europe, respectively.
Nonetheless, Tiffany remains focused on evolving its brand, enhancing omni-channel experience and solidifying position in core markets. Management expects performance to improve in the second half of fiscal 2019 on account of favorable year-over-year comparisons, launch of new products and related marketing campaigns.
Notably, the company is strengthening its network of stores either through opening or upgrading flagship stores in three important areas, Beijing, Shanghai, and Hong Kong. The company is also is entering the Indian market with plans to open new stores in Delhi in second half of fiscal 2019 and in Mumbai in second half of fiscal 2020 in a joint venture with Reliance Brands Limited.
Boot Barn Holdings (BOOT - Free Report) has a long-term earnings growth rate of 15% and a Zacks Rank #1.
Today's Best Stocks from Zacks
Would you like to see the updated picks from our best market-beating strategies? From 2017 through Q3 2019, while the S&P 500 gained +39.6%, five of our strategies returned +51.8%, +57.5%, +96.9%, +119.0%, and even +158.9%.
This outperformance has not just been a recent phenomenon. From 2000 – Q3 2019, while the S&P averaged +5.6% per year, our top strategies averaged up to +54.1% per year.
Image: Bigstock
Tiffany (TIF) Accepts Takeover Offer of Louis Vuitton Owner
Tiffany & Co. accepted the buyout offer of LVMH Moet Hennessy Louis Vuitton SE or LVMH. The owner of Louis Vuitton and Givenchy has entered into a deal to acquire the New York-based jewelry retailer for more than $16 billion. This takeover will provide LVMH a competitive edge in the fast-growing product categories and expand footprint in the U.S. luxury market.
LVMH’s latest offer was $135 a share in cash versus the earlier bid of $120 made in October. Following the news, shares of Tiffany, which competes with Signet (SIG - Free Report) , are up roughly 6% during the pre-market trading on Nov 25. So far in the year, shares of this Zacks Rank #3 (Hold) company have surged 55.9% compared with the industry’s rally of 39.4%.
Industry experts believe that the acquisition of Tiffany — which would become part of growing luxury portfolio comprising Bulgari, Christian Dior, Dom Perignon, Fendi, Sephora and Guerlain — will add sheen to LVMH’s jewelry and watch segments. Meanwhile Tiffany, which operates more than 300 stores worldwide, will also gain from LVMH’s prominent presence in European and Asian markets.
Of late, Tiffany has been grappling with sluggish demand from foreign tourists, adverse currency fluctuations and disruptions in Hong Kong. Moreover, the impact of escalating trade tensions between the United States and China cannot be ruled out. The impact of these headwinds was evident in the company’s second-quarter fiscal 2019 results, wherein both the top and the bottom lines declined year over year.
We also note that comparable sales fell 4% during quarter, reflecting declines of 4%, 3%, 1% and 6% in the Americas, Asia-Pacific, Japan and Europe, respectively.
Nonetheless, Tiffany remains focused on evolving its brand, enhancing omni-channel experience and solidifying position in core markets. Management expects performance to improve in the second half of fiscal 2019 on account of favorable year-over-year comparisons, launch of new products and related marketing campaigns.
Notably, the company is strengthening its network of stores either through opening or upgrading flagship stores in three important areas, Beijing, Shanghai, and Hong Kong. The company is also is entering the Indian market with plans to open new stores in Delhi in second half of fiscal 2019 and in Mumbai in second half of fiscal 2020 in a joint venture with Reliance Brands Limited.
Stocks to Consider
Shoe Carnival’s (SCVL - Free Report) bottom line has outperformed the Zacks Consensus Estimate by 11.5% on average in the trailing four quarters. The stock sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Boot Barn Holdings (BOOT - Free Report) has a long-term earnings growth rate of 15% and a Zacks Rank #1.
Today's Best Stocks from Zacks
Would you like to see the updated picks from our best market-beating strategies? From 2017 through Q3 2019, while the S&P 500 gained +39.6%, five of our strategies returned +51.8%, +57.5%, +96.9%, +119.0%, and even +158.9%.
This outperformance has not just been a recent phenomenon. From 2000 – Q3 2019, while the S&P averaged +5.6% per year, our top strategies averaged up to +54.1% per year.
See their latest picks free >>