The pressure for bold moves is high in the U.S., where other luxury retailers are picking up speed.
Accessories retailerMichael Kors Holdings, for instance, raised its fourth-quarter outlook amid strong demand for luxury goods. Its same-store sales are up a staggering 36 percent, pushing shares up near 130 percent since the company went public in December.
“I am seeing a lot of Kors everywhere in retail,” Champine said. “I think that brand has just expanded distribution enormously. We'll see if they can lap that in 2012.”
That said, Standard & Poors equity analysts rated Tiffany a “buy” on Tuesday.
“Given strong momentum in Asia and our improved outlook for the Americas, we think TIF’s guidance for a 10 percent global net sales gain is achievable,” the company said in a statement.
Last quarter’s U.S. sales were hurt by a drop in Wall Street bonuses, but other markets may help pick up the slack. The company says it expects fiscal-year global net sales to be up 10 percent, led by gains in both Asia and the Americas.
Additional News: Tiffany Profit Falls Short; Sees 2012 Sales Up
Additional Views: Michael Kors Shares Soar on Blowout Earnings______________________________
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Laura Champine does not personally own shares in TIF or KORS. Collins Stewart does not have a banking relationship with either company.