Overall, basic apparel has been really struggling, Telsey noted.
Apparel "has been weaker than overall retail because where's the trend, where's the must-have item? It's been hard to find unless you are athletic and active," she said.
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That was reflected in October's numbers, J.C. Penney shares down 24 percent, Francesca's down 14 percent, and American Eagle and Kohl's both slumping 11 percent.
"Many of those names ... all guided the third-quarter same-store sales results lower than originally expected. So the minute it came out that their sales were a little bit weaker, the stocks came in," she explained.
Telsey thinks another potential comeback name is Kohl's. The retailer has a lot of loyalty card members and if they come back into stores it could possibly boost the fourth quarter, she said.
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When it comes to her favorite picks for the holiday shopping season, those names aren't on the list. Instead, she likes Ulta Salon, Tiffany, L Brands, Macy's and Nordstrom.
—CNBC's Jackie O'Sullivan contributed to this report
Disclosure: Tesley Advisory Group provides investment banking and other noninvestment banking securities related services, and nonsecurities services, and may seek such relationships from companies about whom it provides research.