Before tomorrow's open, jewelry retailer Tiffany & Co. (TIF) will be reporting its third quarter results. Analysts are expecting to see the company show earnings of 23 cents per share.For the same period last year the company had earnings of 35 cents.
Like most retailers dealing in discretionary goods, Tiffany saw its sales drop during the recession, but recent months' sales have been rebounding. Company executives have stated that sales of its top end jewelry is still weak, but sales of its more affordable products has been improving.
David A. Schick of Stifel Nicolaus told investors that he likes what is on the horizon for the company. He noted that luxury car sales are an important future indicator for the overall luxury goods market, and recent jumps in luxury auto sales could mean sales will continue to improve for Tiffany's.
During the second quarter the company had a decline in same store sales of 24%. This period, Schick feels that same store sales should improve to just a 9% decline.
Since reporting better than expected earnings for its second quarter the stock has been moving steadily higher. Shares of TIF rose nearly 52% during the third quarter and is currently trading just shy of its 52 week high that it set earlier this month.
On the day, shares are trading up 0.2% to $41.90, up $0.09.
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