Can Tiffany, Williams-Sonoma and Abercrombie Earnings Please Investors?

August 26, 2014 by Chris Lange

While earnings season is underway, there are still several key earnings reports for investors to pay attention to. That is particularly true in the retail sector. 24/7 Wall St. has created earnings previews for three more key retailers — Tiffany, Williams-Sonoma, Abercrombie — that have earnings on Wednesday and Thursday of this week ahead of the Labor Day holiday.

Earnings estimates, revenue estimates and consensus analyst price targets were taken from Thomson Reuters. Additional color has also been provided on each corporate earnings preview. There is one commonality that all these companies share: their stocks have just hit or are close to 52-week highs. Two of these three stocks also recently hit all-time highs.

Tiffany & Co. (NYSE: TIF) is set to report its earnings on Wednesday before the market opens. This specialty retailer and jeweler hopes to post another, consecutive strong quarter after having reporting revenues of over $1 billion in May. The estimates are $0.85 earnings per share (EPS) and $987.8 million in revenues. The estimates of the following quarter are $0.80 EPS and $984.4 million in revenues. For the same quarter last year Tiffany reported $0.83 EPS and $925.8 million in revenues.

Over the course of this past quarter, Tiffany’s share price climbed to a new all-time high at $103.38. Tiffany has remained near this high, closing Monday at $100.23, with a consensus analyst price target of $105.05. It has a 52-week range of $73.63 to $103.38. The luxury jewelry company is currently valued at 20 times next year’s earnings.

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Williams-Sonoma Inc. (NYSE: WSM) will report its earnings on Wednesday after the market closes. This higher-end retailer has also continued to hit all-time highs over the course of the past quarter — even hitting new an all-time high on Tuesday. The estimates are $0.53 EPS and $1.05 billion in revenues. The estimates for the following quarter are $0.66 EPS and revenues of $1.13 billion.

Williams-Sonoma has been making serious gains in its share price since May, jumping up as much as 23% to the Monday close of $74.54. The consensus analyst price target is $70.72, with a 52-week range of $51.70 to $74.47. Williams-Sonoma has been trading at 20 times next year’s estimated earnings.

Abercrombie & Fitch Co. (NYSE: ANF) is set to report earnings Thursday morning before the market opens. In part because the company posted handy gains over the course of the quarter, Stifel and Wunderlich have reportedly issued or reissued Buy ratings in August prior to this earnings report (with $50 and $48 price targets respectively). The Thomson Reuters estimates are $0.11 EPS and $909.22 million in revenues. This compares to the same quarter last year, which had $0.14 in EPS and $945.7 in revenues. The next quarter has estimates of $0.74 EPS and $1.01 billion in revenues.

Over this quarter, Abercrombie shares have moved higher, and just on Tuesday hit a new 52-week high of $44.39. Its consensus analyst price target is $44.83. The retailer’s stock is valued somewhere close to 90 times its trailing earnings but valued at about only 15 times next year’s fiscal earnings estimate — that is called a turnaround valuation.

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