Tiffany Isn't Shining Bright At The Moment
Tiffany & Co. investors were suffering their worst day in nearly four years on Wednesday falling 12% after announcing their earnings. Tiffany misses analysts' estimates of $1.05 billion in revenue for its third quarter, reporting sales of $1.01 billion. Its same-store sales also disappointed investors, missing estimates by 2.3% and lowered its guidance for same-store sales growth. In particular, same store sales were weaker than expected in Europe and Japan. Tiffany & Co. also blamed the unimpressive results on the Chinese tourism being down in America and Hong Kong and the Chinese government encouraging domestic purchased due to the trade wars with the US.
Despite not seeing any slowdown in demand from US customers, thanks in part to their new marketing to the Millenials and Generation Zs and introducing new designs, such as the HardWear collection promoted by singer Lady Gaga. Lady Gaga was introduced as the new face of the jeweler in an ad that aired during the Super Bowl in February.
The collection features bracelets, rings and earrings with dangle balls—items that may appeal to younger shoppers.
Tiffany and Co., is even saying the word, "Millenials" more in the conference calls.
This is a drastic change since the early 1960s when the company was closely associated with Audrey Hepburn.
So where is the price heading next for Tiffany, lets go to the charts to find out?
On the monthly chart, price broke a monthly up trendline.
On the daily chart, price is sandwiched between daily demand and supply.
Because of this, there isn't a great Reward to Risk trade set-up. Thus, we need to look for other trade set-up opportunities.
This post is my personal opinion. I’m not a financial advisor, this isn't financial advise. Do your own research before making investment decisions.
Published by Rolland Thomas
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