1 / 39

Te-Chi Kuo Cheng-Yuan Huang Yu-Te Hung Min-Min Chen Po-Chieh Shih Date: April 24, 2012

Te-Chi Kuo Cheng-Yuan Huang Yu-Te Hung Min-Min Chen Po-Chieh Shih Date: April 24, 2012. Agenda. Introduction Macroeconomics Stock Market Prospect Industry Business Financial Analysis Competitors Comparable Analysis Financial projection Recommendation. Introduction. Introduction.

ringo
Download Presentation

Te-Chi Kuo Cheng-Yuan Huang Yu-Te Hung Min-Min Chen Po-Chieh Shih Date: April 24, 2012

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Te-Chi Kuo Cheng-Yuan Huang Yu-Te Hung Min-Min Chen Po-Chieh Shih Date: April 24, 2012

  2. Agenda • Introduction • Macroeconomics • Stock Market Prospect • Industry • Business • Financial Analysis • Competitors • Comparable Analysis • Financial projection • Recommendation

  3. Introduction

  4. Introduction • GICS Map: 25504040 (Specialty Stores) • Current Price: $67.00 (4/23/2012’) • P/E: 19.58 • Forward P/E: 14.60 • Market Cap: 8.41B • 52wk Range: 56.21~84.49

  5. Macroeconomics

  6. Macroeconomics

  7. Macroeconomics– the U.S.

  8. Macroeconomics Source: http://research.stlouisfed.org/fred2/

  9. Stock Market Prospect - Diamond Price $21,000 38% Source: www.ajediam.com

  10. Stock Market Prospect - Gold Price 140% Source: http://www.kitco.com

  11. Industry • Revenue: 30.2B • Annual Growth(11~16):3.1%

  12. Industry

  13. Industry

  14. Industry Source: IBISWORLD

  15. Business - Overview • Tiffany’s business was founded in 1837 by Charles Lewis Tiffany. • Charles Lewis Tiffany incorporated Tiffany in New York in 1868. • The Registrant (Tiffany & Co) acquired Tiffany in 1984 and completed the initial public offering of the Registrant’s Common Stock in 1987.

  16. Business – Product Segment • The Company’s principal product category is jewelry, which represented 91%, 91% and 90% of the Registrant’s net sales in 2011, 2010 and 2009.

  17. Business – Sales Area

  18. Business – Sales Area

  19. Business – Management Strategy • The strategy to expand its worldwide store base, Tiffany & Co plans to add 24 Company-operated stores in 2012. • Nine in the Americas, seven in Asia-Pacific, three in Europe and commence operations of five stores in Emerging Markets.

  20. Business – Business Models • Retail Sales. Retail sales are transacted in Company-operated TIFFANY & CO. stores • Internet Sales. The Company offers a selection of TIFFANY & CO. merchandise for purchase through website. • Business-to-Business Sales. Products drawn from the retail product line and items specially developed are sold to business customers. • Wholesale Distribution. Selected TIFFANY & CO. merchandise is sold to independent distributors for resale.

  21. Business – Business Models

  22. Business – Suppliers and Purchase

  23. Business – Manufacture

  24. Business – Rough Diamonds • Conflict Diamonds. (Blood Diamonds) Tiffany has informed its vendors that the Company does not intend to purchase Zimbabwean-produced diamonds. • Manufactured Diamonds Tiffany does not sell manufactured diamonds.

  25. Business – Designer License • Tiffany has been the sole licensee for jewelry designed by Elsa Peretti and bearing her trademark since 1974. • The designs of Ms. Peretti accounted for 10% of the Company’s net sales in 2011, 2010 and 2009. • A written agreement exists between Ms. Peretti and Tiffany, but it may be terminated by either party following six months notice to the other party.

  26. Business - Licensing Agreements • Tiffany received from licensing agreements with Luxottica Group for the distribution of TIFFANY & CO. brand eyewear and with The Swatch Group Ltd. for TIFFANY & CO. brand watches.  • The earnings received from these licensing agreements represented less than 1% of consolidated worldwide net sales in 2011, 2010 and 2009. 

  27. Business • Driving Forces • Increase the percentage of internally-manufactured jewelry. • increase the number of stores • Diversify the business models • Make licensing agreements to third parties.

  28. Financial Analysis Asset breakdown

  29. Financial Analysis

  30. Financial Analysis

  31. Financial Analysis DuPont Analysis

  32. Competitor source: signet annual report, IBISWorld

  33. Competitor Relevant Stock Market source: yahoofinance.com

  34. Comparable Analysis

  35. Financial projection - Projection under risks Although Tiffany & Co., is the outlier in this industry, she still might be impacted by the following: • Households earning over $100,000 • Consumer sentiment index • Per capita disposable income • Marriage rate • World price of gold • External competition

  36. Financial projection Growth Projection- Base

  37. Financial projection Discount rate for TIF

  38. Recommendation Put it in our watch list unless the price goes below $45

  39. Thanks for listening! Q & A

More Related