Make your money go further for just 25p per day

PREMIUM

Can Tiffany still sparkle as China trade war heats up?

10/06/2019 · Tiffany & Co. (TIF) 

Investment Ideas Retail US

Tiffany storefront Covent Garden

Chinese headwinds have put pressure on the jeweller's share price this year and left the stock trading at a slight discount to the wider US market. Is this a buying opportunity for long-term fans, or is now the time to stay on the sidelines? We've been taking a closer look at this story.


Timing matters in investment. Shareholders in upmarket US jeweller Tiffany & Co (US: TIF) who purchased their stock three years ago should be sitting on a 46% profit. But those who bought one year ago - when the stock was buoyed by strong trading - may not be so happy. Their shares have since fallen by about 30%.

Of course, true long-term investors might shrug off both pieces of news and remind us that the shares have risen by about 320% over the last 20 years. The S&P 500 has gained 115% over the same period. Such strong historic performance is impressive. But the firm's sales are increasingly dependent on Chinese spending at home and abroad and with global trade tensions mounting, this could become a problem.

Management warned recently that they expect tariffs to rise to 25% on jewellery exported from US to China. This could put pressure on margins in the increasingly important Chinese domestic market. At the same time,…

Continue reading this article…

With a subscription
Gain access to all our excellent content for just £90 per year, that’s just 25p per day for financial freedom.
  • In depth coverage of many of the world’s great companies
  • Breaking news on potential upcoming disasters
  • Unique insights from our top research team
With credits
Get access to our premium content for as little as £3.20 per article.
  • Only pay for what you want to read
  • Easy credit payment system
  • Access our excellent Premium content

Previous article Next article

Have your say

Log in or register to view or add comments.

For access to the top news and insights from the investment world

REGISTER FREE TODAY

Become a Champion Investor for as little as £3.20 per report or get a year's worth of money-making analysis for just £90.

START FREE TRIAL

More on Tiffany & Co.

Can Tiffany still sparkle as China trade war heats up?

10/06/2019 · Companies Analysed

Chinese headwinds have put pressure on the jeweller's share price this year and left the stock…