Jim Cramer: Buy Nike or Lululemon Stock Over Tiffany

Author:
Publish date:
Video Duration:
44

Tiffany  (TIF) - Get Report is close to an agreement to redo its fractured deal to be acquired by French luxury goods retailer LVMH  (LVMH)  at a lower price, according to media reports.

The new proposal cuts $425 million off the original purchase price of $16 billion, or a per-share deal price of $131.50, down from $135 originally, sources told The Wall Street Journal and Bloomberg.

Tiffany shares recently traded at $129.84, up 0.74%, and have eased 3% year to date.

Bloomberg had reported Tuesday that Tiffany wanted $132 a share and a guarantee that LVMH wouldn’t withdraw from a new deal, as it did in September. LVMH said then that it was acting at behest of the French government.

Tiffany, the New York luxury-goods retailer, reported earlier this month that sales and operating earnings for August and September came in better than expected, as it reopened stores and ramped up its online shopping experience.

Tiffany said worldwide net sales for the two-month period declined slightly from the year-earlier period, while operating earnings that include "transaction-related expenses" increased 25%, with sales in mainland China remaining “extremely strong.”

So should investors consider buying Tiffany when we get a vaccine?

Jim Cramer's simple answer? No. Take a look at Nike  (NKE) - Get Report and Lululemon  (LULU) - Get Report instead.

You can follow Jim Cramer and Katherine Ross on Twitter at @JimCramer and @byKatherineRoss. Read more from Katherine Ross here.

Latest Videos From TheStreet and Jim Cramer: