Paul LaMonica (CNNMoney, Tiffany & Co)
Mar 17, 2017|
Paul LaMonica (CNNMoney, Tiffany & Co) by The Financial Exchange
Transcript - Not for consumer use. Robot overlords only. Will not be accurate.
Gary and shot her. I'm John Mooney along with the Mike Armstrong and Tucker Silva. We'll be having a wonderful Saint Patrick's Day joining us is Paula Monica from CNN money Paul thanks for joining us. Thank you I'm wearing green even though I am Italian American. Very good one half Italian too so where. Tiffany's. Nice report today the stock is up some positive guidance is just telling us something about the high end retailer. Well I think here's what interstate I think it's telling you that they believe me finally. Be. The horse might be over in the US is they've had some big problems. You know strictly during the holidays because of all the traffic around trump tower which is right near the flagship Tiffany's store on Fifth Avenue in New York. Of course there's been so much police presences. You know Secret Service as well after twelve won the presidency. So that had been a problem. US sales are still lower than what interstate is that Asia Japan and China in particular. There's been strong group there and I think that is why the stock is up today. On the top they also lost the CEO. If you weeks ago I knew he stepped down in part because of that struggles that they were having in the US. Initially a lot of people may not appreciate just how important that story is there. By trump tower in Manhattan that is the largest standing at a store in the world. Both in terms of size EM sales volume I understand so right up really really big deal the fact that those protests were stopping business. And hurting business is this an issue. This frankly going forward through the trump administration. They did a little bit it you know it is about 10% of their world so extremely important. But I think it's important to note here is that it's not terribly just protesters that has really clean. Off. You know significantly. You know in New York I think the bigger issue he's. The back and forth when trump comes back to compare our normal audience to hear there's some Barrett is finishing. School. Before you know immediately in Washington this summer. I think the issue is just Secret Service at least. Prize in a round these days it's not as much protest issue it's just that it's a lot harder. For tourists international source that wanna come that store as well as regular New Yorkers just to get it because there's so many roadblocks I think. That could be an issue but yeah for now the company is you basking in the glow all of media attention they're getting actually Asia particular. Longer term fundamentally you know we started early we talked about Canada goose and some of these other you know stories that come and go on high end retail but. I think of Tiffany's and correctly from wrong here I think of them as just the opposite I think actually do have Romo if you get a gift from with a is Tiffany box. It's a big deal. Do you think that they have that mole that can kind of protect them from the competition to make them have more long term intrinsic value. Yeah I mean you know. Can't accuse he's not mr. Lee who accompanied the theory you IPO that. Tiffany it was that eighteenth there that we're talking about a company with real history. Already. Booked up. A movie with Audrey Hepburn I mean this is an iconic company and I think. Even though Amazon. I helped them more on line Tiffany's been able to withstand that challenging increasingly. Signet which owns a lot of lower and all of these Jewelers like Cain Jared they're going to some significant problems right out concerns. About their results being sluggish and also accusations of you know you know sexual harassment back and Leach or acting out so I think that if we could potentially benefit. From the blows that are being you felt very cute yet at it which is one other bigger. Also I would imagine they would be a beneficiary of a high income tax cuts. Yeah I think AB. You know attack change it is who'd be too big that would boost consumer spending particularly. Poor you know the more affluent I think that it's something that. You would be enough pots as well I think really that the bigger issues. We have a stronger economies. Should handle that bodes well pork. Retailers and not just high end retailers I think that would be more key than any short term impact. Pack. And Paul again looking big picture at the stock when you look at the price you look at the valuation. You look at the balance sheet. Is this the by. Is there is there value in Tiffany's as a stock if our listeners are Easton pa. Yes but. Really something you know in my life work making recommendations. First day and night to think that it appears that the course he's probably. Over in the US and any time you have new management also activist investors. You know she is you'll be player in that Tiffany now that does. TV positive signs that maybe the war is over but obviously you know. Great point Paula Monica CNN money on Tiffany's thank you very much for joining us thank you have a great weekend.