Although they aren’t always considered as defensive as major consumer-staple stocks, such as The Coca-Cola Company (NYSE:KO)
or Philip Morris International Inc. (NYSE:PM)
, the stocks that cater to the high-end markets have proven to be resilient during tough economic times, while also excelling in a bustling economy. I’ve long felt that either either Tiffany & Co. (NYSE:TIF)
or Coach, Inc. (NYSE:COH)
would be great buyout candidates.
And although it’s a less favorite bet of mine, Fossil Group Inc (NASDAQ:FOSL)
is still a solid company that’s been expanding its portfolio nicely. What’s best is that all three of these stocks have dwarfed the performance of the S&P 500
over the last five years.
Tiffany & Co. (NYSE:TIF) is a leading international retailer, designer, manufacturer, and distributor of fine jewelry. At a $10 billion market cap, I also conform to the thesis that the company could be a takeout target
. Tiffany & Co. (NYSE:TIF) would make a great addition to one of the major luxury retailers, such as LVHM.
The little blue box is Tiffany & Co. (NYSE:TIF)’s stable, and jewelry is its bread-n-butter, accounting for 90% of 2012 sales. Tiffany & Co. (NYSE:TIF) internally produces about 60% of its merchandise sold. Tiffany & Co. (NYSE:TIF) is also looking to strengthen its international exposure, where in fiscal 2013, the company generated 50% of revenue from the Americas and 21% from Asia, 17% Japan and 11% Europe.
Fiscal 1Q 2014 started off strong, with worldwide same-store sales growth of 8% year-over-year — most notably there was 9% same-store sale growth in Asia and 21% in Japan.
Some of its key international growth opportunities lie in Russia, Brazil and India. Meanwhile, the company is also looking to focus on smaller stores, which will highlight its higher-margin products and improve its sales per square foot.
Of the 16 stores it plans to open in fiscal 2014, three will be in the U.S., while one in Canada, Mexico and Brazil each, seven in Asia and three in Europe.
Coach, Inc. (NYSE:COH) designs, makes and markets fine accessories for women and men, including handbags and travel accessories. I’d be remiss if I didn’t mention the fact that there have been a couple of “hot” companies coming to market, including Michael Kors Holdings Ltd (NYSE:KORS) and Kate Spade. Yet, Coach, Inc. (NYSE:COH) is looking to keep its market share with new retail store openings. One of its latest initiatives in the retail market is the plan to open its first store-in-a-store in Macy’s, Inc. (NYSE:M) later this year.