Tiffany & Co. (TIF), Coach, Inc. (COH): A Sterling Global Brand

Danger abroad
Tiffany isn’t immune to currency fluctuations, and exchange rates put a sizable dent in the company’s earnings last quarter. As Europe and Japan jump and fall, the stability of earnings for any company operating overseas is going to be in jeopardy. The best thing those businesses can do is spend that cash in the countries where they make it. That means that the businesses don’t lose out by repatriating earnings at a weak exchange rate.

Overall, Tiffany is making good headway in its overseas operations, and it gives other businesses a loose model to follow. While Michael Kors Holdings Ltd (NYSE:KORS) is killing it in the U.S. and Europe, it still has a long way to go to be a truly global brand. Coach, Inc. (NYSE:COH) has made better inroads, but at the cost of its U.S. business’s success. Maybe Tiffany has found the middle ground that both companies are looking for.

The article A Sterling Global Brand originally appeared on Fool.com is written by Andrew Marder.

Fool contributor Andrew Marder has no position in any stocks mentioned. The Motley Fool recommends Coach and Google. The Motley Fool owns shares of Coach and Google.

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