Taking The Shine Off Of Tiffany

Tiffany says early holiday sales were better than expected but Goldman Sachs' retail analyst is taking a cautious view.

"We do expect continued pressures on production costs,” Adrianne Shapira told CNBC’s Power Lunch, Shapira was picking up on the jeweler's statement that higher materials costs had taken a bite out of otherwise strong third-quarter earnings.

Shapira, however, does think Tiffany's can overcome that challenege “We do think there is an opportunity to deliver some better top-lines to offset that,” Shapira said.

The company clearly thinks that's possibe. It lifted full-year guidance today, surpassing analysts' expectations.