Tiffany not feeling blue: Stock up 20% this yearMarch 22, 2013: 11:34 AM ET
Tiffany might want to change the color of its trademark blue box to green. Shares of Tiffany (TIF) rose nearly 2% Friday after the luxury retailer reported earnings that topped forecasts.
Tiffany's stock is also outperforming lower-end jewelry chains Signet (SIG) -- of "He went to Jared!" and "Every kiss begins with Kay" fame -- and Zale (ZLC) as well as online jeweler Blue Nile (NILE).
Still, some traders on StockTwits are skeptical that Tiffany can continue to do so well. A closer look at the numbers shows some less-than-sparkling trends. Overall sales were a bit below forecasts. Same-store sales were flat from a year ago. And the earnings outlook wasn't that great.
Very interesting. It could be the case that investors were bracing for worse results. After all, earnings estimates for the quarter and the full year have already come down over the past three months. And the stock missed the rally last year, falling nearly 12% in 2012.
But some traders think Tiffany's stock has rebounded a little too quickly.
That's a great point about valuation. Signet and Zale are both trading at only about 12 to 13 times fiscal 2014 earnings estimates.
Nonetheless, other traders felt that Tiffany's numbers were worth celebrating and added that this could be the beginning of a comeback for luxury overall.
Both Coach and Michael Kors (KORS) were up Friday morning. Then again, so was the whole market.
Speaking of the market, it's interesting (and perhaps a bit scary in a 2007-early 2008 subprime is "likely to be contained" sort of way) that investors in the U.S. have largely dismissed the turmoil in Cyprus this week.
Few seem to fear that Cyprus may leave the eurozone and spark a bigger round of problems in the likes of Greece, Spain and Italy. The market may be right (they may be crazy) to not be worried. Or they may be betting on a simple and elegant solution to the Cyprus problem. And you'll find it in my Reader Comment of the Week.
Ha! Apple (AAPL) could use that $137 billion in cash for altruistic reasons. But I'm not betting on Tim Cook saving Europe.
As for the iPhone 6, isn't the iPhone 5S coming out first? Either way, I hope Apple fixes its maligned Maps app. At the very least, it should give Cypriots the proper directions to their nearest ATM in case there's another bank run next week.