Tiffany, 3 Other Luxury Retailers No Bargains

Michael Kors Holdings Limited reported better-than-expected earnings on Feb. 7. The stock traded to a multi-year intraday high of $69.95 that day and then slumped into correction territory to Thursday’s close of $60.03, down 14.2%. This sets up a weekly “key reversal,” despite the stock being in bull market territory at 85.4% above its May 31, 2017, low of $32.38.

Movado Group, Inc. will not report its earnings until March 19. The stock set a multi-year intraday high of $33.95 on Jan. 19 and is now in correction territory, down 11.3% since setting this high. Even so, the stock is in bull market territory at 47.1% above its May 31, 2017, low of $20.50.

Ralph Lauren Corporation set its multi-year intraday high of $119.33 on Jan. 24 and is now in correction territory, down 15.1% since setting this high, despite an earnings beat reported on Feb.1. Even so, the stock is in bull market territory at 53.4% above its May 30, 2017, low of $66.06.

Tiffany & Co. set its multi-year intraday high of $111.44 on Jan. 24 and is now in correction territory, down 10.6% since setting this high. Even so, the stock is in bull market territory, up 28.1% since trading as low as $77.74 on Feb. 7, 2017. Tiffany will not report its earnings until March 16.

We know that consumer spending for luxury items increased during the 2017 holiday season, but consumers may have zipped up their wallets, perhaps waiting to see some paychecks in February and beyond. Credit card debt is on the rise even for more wealthy consumers who are feeling pinched, particularly if their 401(k) retirement funds feel the drain of a bear market for stocks. (See also: The Psychology Behind Why People Buy Luxury Goods.)

Here’s how to trade these stocks based upon weekly charts and key levels.

 

Michael Kors and Ralph Lauren beat on earnings but peaked in price, while Movado and Tiffany prepare their earnings for mid-March. …read more

Read more here: Tiffany, 3 Other Luxury Retailers No Bargains

Category: KORS, MOV, RL, TIF

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