Two Luxuries You Really Can Afford to Buy, Says Analyst

Jewelry-maker Tiffany & Co. beat Wall Street's expectations, reporting better than expected earnings this morning. Meanwhile, women's apparel maker Michael Kors reports tomorrow.

According to noted retail analyst Dana Telsey, CEO of the Telsey Advisory Group, both of these stocks maybe the best thing to buy from either brands.

Jewelry maker Tiffany's revenues were up 10% to $895 million for the most recent quarter. Though buyers in all regions were plunking down more bucks for little blue boxes, sales growth was helped by stores in the Middle East (up 9%) and Asia (up 15%). Telsey was impressed by their ability grow sales more than anticipated and their handling of expenses.

Telsey was also a fan of Michael Kors [disclosure: Telsey Advisory Group received compensation for investment banking services from Michael Kors Holdings Limited in the past 12 months]. She estimates comparable sales this quarter will be up 30% versus $380 million this time last year. She also believes its earnings will be $0.40 per share, versus Wall Street's consensus of $0.39.

But do the charts match Telsey's forecasts? Talking Numbers contributor Richard Ross, Global Technical Strategist at Auerbach Grayson, gives his take.

To hear more of Telsey's and Ross' analyses, watch the video above.


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