Amazon.com, Inc. (AMZN), Sothebys (BID), Tiffany & Co. (TIF): Are These “Artsy” Picks Safe From e-Tailers?

Page 2 of 2

Looking more attractive, Tiffany has a forward one-year P/E ratio that barely touches the 20s, The jeweler also had an appreciable 2013 first quarter with its worldwide sales rising 9% and net profit gaining 3%. With faster growth in Asia and lower-price silver jewelry as the main primers, it expects 6-8% sales growth for this year, a pace that Wall Street sees as a return to more robust gains for the company. Notably, Tiffany & Co. (NYSE:TIF) is adding 14 company-operated stores this year; seven in Asia-Pacific, six in the Americas, and three in Europe.

Although Sotheby’s 2013 first quarter was a bit rougher, its one-year P/E valuation close to 18 appears inviting. For the most recent quarter the auctioneer had a 3% drop in revenues to $101.7 million, despite an increase in auction sales. Its auction commission margins, which trended lower for the quarter, have been strengthened recently to help in revenue improvement.

Conclusion: Ready for the challenge

As a final take, Sothebys (NYSE:BID) looks ready to fend off any incursion of e-tailers like Amazon.com, Inc. (NASDAQ:AMZN) on its turf by adopting the same technological tools wielded against it. Company chairman, president and CEO Bill Ruprecht said Sotheby’s is “continuing to redefine and personalize the company’s client experience.” These initiatives, he said, include the delivery of web-based tools so that company clients across the globe can engage Sothebys (NYSE:BID) “anywhere, at any time on any device” and access private sales shows be it in New York, London, Hong Kong, or China and elsewhere.

The article Are These “Artsy” Picks Safe From e-Tailers? originally appeared on Fool.com and is written by Arturo Cuevas.

Arturo Cuevas has no position in any stocks mentioned. The Motley Fool recommends Amazon.com and Sothebys (NYSE:BID). The Motley Fool owns shares of Amazon.com, Inc. (NASDAQ:AMZN). Arturo is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Page 2 of 2