How Long Will Tiffany & Co. Keep Its Shine?

blew out numbers on Wednesday, handily beating street consensus with Q1 worldwide comps topping estimates across all regions. Most impressive was a European comp of +17 percent—or is it? Let me illustrate with some chart porn: Tiffany is benefiting from a wealth effect linked to European Central Banking asset purchases/quantitative easing which began earlier in 2015 and should continue I believe until late 2016. However, it does beg the question of how long the company can sustain comps performance at the same the velocity.

Taking a gander at the chart below, it does seem to bode well for the stock as it is trading back in line with its peers. That said, how does Tiffany outperform while

is gasping for air? The answer is that Tiffany is a true heritage luxury brand whilst Michael Kors is merely aspirational. Tiffany doesn't go on sale. Meanwhile, Michael Kors chooses to keep entry level price points "accessible" so consumers can see it all over the subway and on every street corner and elementary school parking lot. Must I bring Coach into the fray as a cautionary tale? Tiffany has managed to take its prices UP this quarter. As I always say...Membership has its privileges.