Premium handbag maker Michael Kors posted
"I think, overall, when I look at the name, I think yes, you had a sequentially improved comp, earnings came in better than expected, but look under the hood," she told CNBC's "Fast Money: Halftime Report" Wednesday. "The reason why the numbers are better than expected: You had lower SG&A, lower tax rate, you had a share repurchase."
Telsey added that the handbag industry is decelerating off a larger base but Kate Spade might still be a good buy.
"I think the difference between KATE and KORS, it's a smaller business, it's off a smaller base, it has a more extensive product offering," she said. "It doesn't have as much exposure to the department stores as what both Coach and Kors have, and their comps are running positive because it is such a smaller base."