Tiffany Isn't Shining Bright At The Moment - Part II
One month ago, I wrote about how Tiffany missed analysts' estimates of $1.05 billion in revenue for its third quarter, reported sales of $1.01 billion. Its same-store sales also disappointed investors and missed estimates by 2.3% and lowered its guidance for same-store sales growth.
Tiffany Isn't Shining Bright At The Moment
But a report by Mastercard indicated that retail spending in Nov-Dec actually increased.
A robust shopping season from before Thanksgiving through Christmas has given retailers much to cheer about this year. According to Mastercard SpendingPulseTM, which provides insights into overall retail spending trends across all payment types, including cash and check, holiday sales increased 5.1 percent to more than $850 billion this year – the strongest growth in the last six years. Online shopping also saw large gains of 19.1 percent compared to 2017.
Based on the Consumer Confidence Index, consumers haven't definitively realize that the economy is slowing down, but when they do, it's going to hit them like a freight train.
Last week, Tiffany stock price broke though the daily supply at $82.
This level now becomes resistance.
As price break the $82 level, it formed another daily supply at $87.
The chart suggests there is further downside risk. Next target is $52 and my final target is $37.
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.
