What do you get for the person who has everything? Well, maybe you buy him a piece of history. The U.S. Marshals Service has done all the hard work, and now you can take advantage of it... maybe even at discount prices! Possessions seized from Ponzi schemer Bernie Madoff are set to go under the gavel in New York City on Saturday, so bring your checkbook and your appetite for luxury. The money will be used to compensate the victims of Madoff's crimes.
jewelry posts
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Luxury spending on the rise
MasterCard Advisors (NYSE: MA) service SpendingPulse says luxury and electronics sales headed upward last month, in a pleasant deviation from what became the norm all too long ago. A few other product categories posted gains as well – showing stability, if not a recovery. But, at this stage of the game, we'll take what we can get, right?
Luxury sales, not including jewelry, gained 3.4% year-over-year – that's an increase of $891 million. Last September, luxury goods suffered a 9.4% decline. Yet, this category is still below its September 2005 level of $94 million. Jewelry sales gained 1.2% relative to last year, compared to a year-over-year decline of 5.8% a year ago. Compared to apparel sales, this is a profound turn. In September 2008, the clothing category was off 5.7%, and this September, it was down only 2.9%.
Avon encounters resistance near $33
Tech talk: Avon Product, Inc.'s (NYSE: AVP) restructuring is paying-off, but the stock has run into technical resistance at/near $33, so I'm not recommending the purchase of additional shares at this time. Those investors who purchased AVP when first recommended on May 6, 2009 at a price of $23.12 should hold their shares.
Tiffany & Co. (TIF) matches analyst estimates for Q1
Tiffany & Co. (NYSE: TIF) reported its first quarter results this morning, matching analyst estimates with 20 cents per share on lower sales. This marks a 60% drop year over year compared with the 50 cents per share that it earned during its first quarter of 2008.
As I noted in our earnings preview yesterday, the luxury jewelry retailer is facing some tough times. Consumers have been cutting back on spending, and this is being felt by all retailers. Tiffany has been no exception.
Continue reading Tiffany & Co. (TIF) matches analyst estimates for Q1
Tiffany 4Q profit falls, but the jeweler keeps its shine
Tiffany (NYSE: TIF) reported fourth-quarter earnings that dropped more than 75% from a year earlier as pocketbooks remained clamped throughout the holidays. It certainly seems that the market for high-end jewelry was far lower during the holidays, thanks to the current economic mess.The retailer reported earnings of 25 cents per share compared to 96 cents per share a year ago. Taking staff cuts and other costs out of the equation, TIF's earnings checked in at 85 cents per share. The ex-item results were better than Wall Street's expected 80 cents per share. While revenue dropped 20% to $841.2 million, it topped the consensus estimate of $838 million.
Continue reading Tiffany 4Q profit falls, but the jeweler keeps its shine
Zales (ZLC) announces store closings
Yesterday, struggling jewelry retailer Zale Corp. (NYSE: ZLC) announced the closure of 115 stores in a drastic cost-reduction plan. The company also announced that revenue dropped nearly 18% in the second quarter.The stores designated for closure will lock their doors for good when their leases mature. The closing stores are poor sales performers. In addition, ZLC announced that it will cut its capital spending by 65%, along with 245 jobs already cut this month. Furthermore, the jeweler plans to reduce its debt by roughly $40 million from the end of the second quarter through July (which is the end of ZLC's fiscal year). ZLC noted that the addition of Canadian and Puerto Rican assets give the company flexibility and sufficient liquidity.
Tiffany & Co. proves that luxury isn't a buy in this economy (or is it?)
At the beginning of every downturn, it seems that some analyst claims there is a haven for luxury retailers, still, especially the classic retreats of the very, very rich -- like Tiffany & Co (NYSE: TIF). And then: reality. In this current era, "reality" equals the collapse of many of America's most storied financial institutions; the companies whose deal gifts and corporate tokens were, more often than not, wrapped in Tiffany's iconic blue ribbon.With far fewer investment banks to hold Christmas parties and bonuses not rolling as they typically do, shoppers, it seems, avoided pricey baubles as gifts. Holiday sales were down 21%, Tiffany reported today, and it lowered its forecast for the fiscal year's earnings, down to a range of $2.25 to $2.30 per share. Its fourth quarter ends on January 31, and Tiffany CEO Michael Kowalski expects the depressed luxury retail environment to continue well into fiscal 2009.
This comes following a late November prediction that 2008 EPS would come in as much as 28 cents below analyst's estimates, between $2.30 and $2.50 a share.
Tiffany's stock sank as much as $2.00 per share on the news during the day, but by market close, had rebounded to only a few cents' decline, down 0.23% to $21.95. This may be a buying opportunity, however; after having recorded a five-year low of $16.75 in November, the stock has been climbing slowly up from its nadir. Will luxury look to have its heyday again? Perhaps.
No. 8: Rich people know the difference between an appreciating and a depreciating asset
This post is part of a series where personal finance expert Dan Solin looks at money secrets that help the rich stay rich. See more.Rich people own both appreciating and depreciating assets. They know the difference.
Depreciating assets decline in value.
Appreciating assets increase in value.
It is the appreciating assets that permit rich people to purchase the depreciating assets, and not the other way around.
Rich people get rich by buying assets that increase in value slowly over time. They build up businesses. The buy and hold real estate.
They invest in the stock market differently than most individual investors. They determine their asset allocation and buy and hold a globally diversified portfolio of low-cost stock and bond index funds.
Company nicknames: Neiman Marcus -- If you have to ask about price ...
This post is one in a series on prominent company nicknames. See all 25, and share your thoughts and memories about Needless Markup below in the comments.
Neiman Marcus may be the most successful upscale retail department chain that selected shoppers love to hold a grudge against.
The chain caters to primarily female, upper-income and upper-middle shoppers, and features designer lines that rival boutique (and beyond) price levels.
Further, while some of the products are decidedly exclusive, some are not or appear to not be, according to shoppers, but the prices of these items remain in the stratosphere, and it is for this reason that the store was tagged with the nickname "Needless Markup."
Here's a classic example. About a year ago Marie Lang, sister of yours truly, was searching for a leather shoulder bag. She found a medium brown, designer bag she liked for $1,200 at Neiman Marcus. However, being a discerning/critical comparison shopper, Marie of course took a few days to scout the competition.
The result? She found a comparable shoulder bag at Bloomingdale's for $595. Had she been willing to take a slightly smaller bag, she could have secured one for $395.
Continue reading Company nicknames: Neiman Marcus -- If you have to ask about price ...
Elizabeth Taylor and Kathy Ireland walk away from jewelry company
House of Taylor Jewelry Inc. (OTC: HOTJ) is closing up shop, according to The New York Post. Elizabeth Taylor and Kathy Ireland, the company's celebrity spokespeople, have severed their ties with the company, leaving New Stream Secured Capital to forage for the $11 million it's still owed.Taylor and Ireland reaped generous license fees for their participation in the venture and also owned a combined 49.5% stake in the venture.
Having debuted at $4 per share in 2006, House of Taylor closed on Tuesday at less than 4/10th's of one penny. The failure of this company could hardly be considered surprising. The company's large debt load makes this a tough economic environment to execute a turnaround and it seems doubtful that has-beens like Kathy Ireland and Elizabeth Taylor have sufficient selling power to justify their licensing fees.
Looking through the S&P list of jewelry companies, I'm having trouble finding one whose stock has been up over the past 52 weeks.
Barrick Gold: A defensive stock with an inflation hedge
In a market dancing in bear market territory and with elevated inflation, it certainly doesn't hurt to own a defensive stock or two. And one that fits the bill, with an inflation hedge as a bonus, is Barrick Gold (NYSE: ABX).
Barrick Gold is the world's number one gold producer, with a 2007 production capacity of 8.1 million ounces, and 124.6 million ounces in proved/probable reserves. Analysts see a 20-30% revenue gain in 2008 for ABX, following a solid performance in 2007, due to a higher average gold price and increased production.
What's behind the gold bull market? Three factors: 1) increased use of gold in industrial and commercial applications, 2) rising demand for gold jewelry, and 3) increased reliance on gold and gold shares as an alternative investment. All three trends show only modest signs of abating in 2008. Asia-based jewelry demand looks especially promising in the immediate years ahead. The Reuters F2008/F2009 EPS consensus estimates for ABX are $2.43/$2.60.
Continue reading Barrick Gold: A defensive stock with an inflation hedge
Now, younger adult customers are starting to call on Avon
Readers of this space know that the investment bias is toward large-cap companies with demonstrated business models and a competitive advantage in established markets, preferably with a favorable global trend as a support. With this in mind, Avon is worth an evaluation.
For decades a door-to-door company, Avon (NYSE: AVP) has stepped into the globalization and digital ages, and the initial progress reports are positive.
Avon is the midst of a restructuring aimed at increasing efficiency and widening the company's sales venues. In its most recent quarter, Avon's North American region was a laggard, but its international business performed well, registering a 16% increase in sales, with double-digit gains from Central/Eastern Europe, and an impressive 29% rise in China. Further, in general, analysts were pleased with AVP's emerging market performance, citing brand building gains and an ability to attract much-sought, younger-adult women. As a result, AVP is on-track to meet analysts' 7-9% revenue gain for F2008.
Direct selling (5.3 million representatives) continues to be AVP's base, but catalogs, mall kiosks, a day spa, and a web site create a diverse retail presence.
All the while, Avon has also reduced its costs by initiating manufacturing operations in lower-cost regions of the world, and via sales force productivity increases. The company's expanded product base (cosmetics, fragrances, toiletries, jewelry, apparel, and home furnishings) is succeeding at widening its brand appeal across categories. The Reuters F2008/F2009 EPS consensus estimates for AVP are $2.16/$2.57.
For decades a door-to-door company, Avon (NYSE: AVP) has stepped into the globalization and digital ages, and the initial progress reports are positive.
Avon is the midst of a restructuring aimed at increasing efficiency and widening the company's sales venues. In its most recent quarter, Avon's North American region was a laggard, but its international business performed well, registering a 16% increase in sales, with double-digit gains from Central/Eastern Europe, and an impressive 29% rise in China. Further, in general, analysts were pleased with AVP's emerging market performance, citing brand building gains and an ability to attract much-sought, younger-adult women. As a result, AVP is on-track to meet analysts' 7-9% revenue gain for F2008.
Direct selling (5.3 million representatives) continues to be AVP's base, but catalogs, mall kiosks, a day spa, and a web site create a diverse retail presence.
All the while, Avon has also reduced its costs by initiating manufacturing operations in lower-cost regions of the world, and via sales force productivity increases. The company's expanded product base (cosmetics, fragrances, toiletries, jewelry, apparel, and home furnishings) is succeeding at widening its brand appeal across categories. The Reuters F2008/F2009 EPS consensus estimates for AVP are $2.16/$2.57.
Continue reading Now, younger adult customers are starting to call on Avon
Gold falls below $900 as dollar rallies
Gold fell about $17 to $892.60 an ounce by midday Tuesday on expectations that the dollar will continue to rally against the euro, Bloomberg News reported. Gold has fallen more than 4% in about a week. Independent currency trader Andrew Resnick, who does not trade gold but follows the market as part of currency market research, says the gold-as-investment-vehicle strategy is being challenged by the U.S. Federal Reserve's efforts to stimulate the U.S. economy.
"Absent a growing U.S. economy, gold can serve not only as an inflation hedge, but as an investment," Resnick said. "But the Fed's interest rate has traders believing the U.S. economy will accelerate in the second half of 2008, which will increase demand for U.S. assets and force money out of gold and into these investments." Resnick added that he does not have a trading position in gold.
Gold hits record $924 on South African mine power problem
Gold hit a record $924.30 per ounce before pulling back slightly, and was up $14.20 to $920.00 per ounce in mid-day Friday trading.
South Africa's AngloGold Ashanti Ltd., Gold Fields Ltd. and Anglo Platinum Ltd. shut their South African mines because of power problems, Bloomberg News reported. South Africa is the world's No. 2 producer of gold, behind China.
Continue reading Gold hits record $924 on South African mine power problem
Blue Nile just sparkles with opportunity
There are stock pull-backs, and then there are stock pull-backs that signal 'opportunity.' Or should one say here just 'sparkles' with opportunity?
Online diamond company Blue Nile (NASDAQ: NILE) is the largest online retailer of certified diamonds and fine jewelry, and part of the reason it attained that status is the company's philosophy: Blue Nile believes choosing the right engagement ring doesn't have to be complicated.
The company's web site is a pillar on which the NILE foundation stands: its structured so that the typical person can navigate carat / cut / clarity / color characteristics of diamonds and ring characteristics with relative ease. A 30-day return policy puts the potential purchaser at ease.
Online diamond company Blue Nile (NASDAQ: NILE) is the largest online retailer of certified diamonds and fine jewelry, and part of the reason it attained that status is the company's philosophy: Blue Nile believes choosing the right engagement ring doesn't have to be complicated.
The company's web site is a pillar on which the NILE foundation stands: its structured so that the typical person can navigate carat / cut / clarity / color characteristics of diamonds and ring characteristics with relative ease. A 30-day return policy puts the potential purchaser at ease.
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