Bad news for the entire luxury retail sector from Tiffany & Co. (TIF) yesterday in the company's update of holiday sales.
I'd look to cut my short-term exposure to the sector—and that includes shares of companies such as Coach (COH) that aren't luxury retailers in the United States, but are in their fastest growing market, China.The reliable Aquatimer leatherhandbags.
As of today, January 11, I'm selling Coach out of my Jubak's Picks portfolio with a gain of 80.47% since I added it to the portfolio on November 20,Offering a huge selection of chloehandbags online store . 2009.
At Tiffany, same-store sales in the first two months of the fourth quarter—adjusted for currency—fell by 4% in Europe and grew by a meager 2% in North America. That compares to 6% growth in Europe and 15% in North America in the third quarter.
Disappointing, but nothing unexpected, in sales numbers from these two regions. Sales growth had been expected to slow, and sales in Europe had been expected to decline.Buy cheap high quality hermeshandbags Watches,
The surprise—and the reason I'd lighten up on the whole sector right now—came from Asia. Sales growth (in Asia outside of Japan) dropped to 12% from 36% growth in the third quarter.Welcome to Find The Bestreplicalvhandbag. That was significantly below analyst expectations of a drop to 20% growth.
The 36% growth rate in the third quarter was itself down from 41% year-over-year growth in the second quarter. And Tiffany reduced its earnings forecast for 2012 to $3.Buy China real cosmeticbagfactory from China ,60 to $3.65, from a previous forecast of $3.70 to $3.80.
Now, Coach isn't Tiffany in a number of important ways. It sells at a different price point, and it sells a different mix of products.
And judging from reports from other retailers, handbags and accessories—Coach's core products (handbags made up 63% of sales in the 2011 fiscal year ended in July, and accessories 27%)—have sold better than categories such as apparel during this holiday season.
But China is one of Coach's key drivers for growth. The company has pushed its share of China's handbag market up to 6% and increased its square footage in China by 61% in fiscal 2011.
I'd look to cut my short-term exposure to the sector—and that includes shares of companies such as Coach (COH) that aren't luxury retailers in the United States, but are in their fastest growing market, China.The reliable Aquatimer leatherhandbags.
As of today, January 11, I'm selling Coach out of my Jubak's Picks portfolio with a gain of 80.47% since I added it to the portfolio on November 20,Offering a huge selection of chloehandbags online store . 2009.
At Tiffany, same-store sales in the first two months of the fourth quarter—adjusted for currency—fell by 4% in Europe and grew by a meager 2% in North America. That compares to 6% growth in Europe and 15% in North America in the third quarter.
Disappointing, but nothing unexpected, in sales numbers from these two regions. Sales growth had been expected to slow, and sales in Europe had been expected to decline.Buy cheap high quality hermeshandbags Watches,
The surprise—and the reason I'd lighten up on the whole sector right now—came from Asia. Sales growth (in Asia outside of Japan) dropped to 12% from 36% growth in the third quarter.Welcome to Find The Bestreplicalvhandbag. That was significantly below analyst expectations of a drop to 20% growth.
The 36% growth rate in the third quarter was itself down from 41% year-over-year growth in the second quarter. And Tiffany reduced its earnings forecast for 2012 to $3.Buy China real cosmeticbagfactory from China ,60 to $3.65, from a previous forecast of $3.70 to $3.80.
Now, Coach isn't Tiffany in a number of important ways. It sells at a different price point, and it sells a different mix of products.
And judging from reports from other retailers, handbags and accessories—Coach's core products (handbags made up 63% of sales in the 2011 fiscal year ended in July, and accessories 27%)—have sold better than categories such as apparel during this holiday season.
But China is one of Coach's key drivers for growth. The company has pushed its share of China's handbag market up to 6% and increased its square footage in China by 61% in fiscal 2011.
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