Better than you?
As compared to its closest competitor, Signet’s quarterly results are outstanding, to say the least. Tiffany & Co. (NYSE:TIF), the specialty jeweler, posted a decline of 2% in same-store sales in the U.S. in the previous quarter.
Increase in Tiffany’s total sales for the quarter was also modest — up 4% to $1.2 billion. Unlike Signet, Tiffany & Co. (NYSE:TIF) is exposed to currency fluctuations in Asia along with the European crisis. Despite having a much stronger brand presence and higher profit margins than Signet, the blue box brand could not match Signet’s figures in the previous quarter.
The Foolish bottom line
Currently, Signet’s shares are trading at an all time high. The company has managed to outperform most companies in its segment, despite a weak holiday season. Signet’s performance shows it can give some strong competition to bigger luxury brands. Although much smaller than Tiffany, Signet has generated greater revenue than Tiffany over the last twelve months. While Signet’s revenues were $3.98 billion, Tiffany generated $3.79 billion over the same period. Further, Signet’s profit margin of 9% is catching up fast with Tiffany’s 11%.
Signet’s foothold in the U.S. is getting stronger. This could only mean one thing — this company is only getting bigger and you should keep an eye on it.
The article This Jewelry Stock Can Make You Rich originally appeared on Fool.com and is written by Sonam Chamaria.
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