It’s a Coach, Nordstrom and Tiffany Retail Economy – COH, JWN, TIF

As more and more retailers report their earnings, its beginning to look more and more like a Coach, Nordstrom and Tiffany retail economy as the affluent go out and shop while the not so affluent stay home or buy lower priced items such as more hamburger meat in lieu of steak. Moreover, retailers with a significant overseas presence appear to be faring better as well.

In fact, take a look at the recent performance of three upscale retailers (COH, JWN and TIF):

• Nordstrom (NYSE: JWN) is an upscale fashion specialty retailer with 207 retail stores in 28 states. F0r 1Q2011, Nordstrom posted earnings growth of 32.7% or 69 cents a share, higher than the 52 cents per share posted for 1Q2010. In addition, revenue grew 12.0% to $2,229 million from $1,990 million in 1Q2010 thanks to 6.5% growth in same-store sales. Nordstrom recently closed at $46.45 a share and has a 52 week trading range of $28.44 to $49.43 a share.
• Tiffany & Co. (NYSE: TIF) is a jewelry and luxury goods retailer with more than 200 retail locations worldwide along with department store boutiques in Japan. Tiffany & Co. is the poster child for an economic recovery that has encouraged the affluent to once again start spending on luxury products. In fact, Tiffany & Co. recently hit a new 52 week high. Tiffany & Co. has just closed at $70.26 a share and has a 52 week trading range of $35.81 to $70.45 a share.
• Coach (NYSE: COH) designs and markets luxury accessories and is particularly well know for its luxury handbags. However, Coach generates almost one-fifth of its sales in Japan and has taken a hit in the Fukushima nuclear disaster. In fact, the Japan disaster could reduce Coach’s current-quarter earnings by 2 to 3 cents per share (or 5% Wall Street's earnings forecast). However, Coach also recently reported a better-than-expected 18% rise in profits due to sales growth in the US and China markets and like Prada, it will seek a secondary listing in Hong Kong. Coach recently closed at $60.65 a share and has a 52 week trading range of $33.75 to $61.44 a share.

In other words, just a brief look at upscale retailers Coach, Nordstrom and Tiffany & Co. will having you asking: “What recession?”