Tiffany & Co. (TIF) has had an interesting trading day. With a little over two hours to go before the end of the session, shares are off by 1.1% to $60.26. Earlier this morning, the stock was at a higher level. TheFly says there was some speculation about the jewelry retailer being a potential acquisition candidate. I'm not sure if the company will be acquired or not, but I enjoyed reading a bit of good news on the fundamental front.

According to the Associated Press, Tiffany experienced an 8% rise in same-store sales for the months of November and December (this stat is adjusted to take into account changes in exchange rates). Also, the net-income outlook for the full fiscal year has been upgraded: the new range of between $2.83 and $2.88 replaces the old range of between $2.72 and $2.77.

Shares of Tiffany & Co. (TIF) are off by 3.2% as I write this. At a price of $40.68, the stock is well below the 52-week high of $52.19. Volume is quite strong. Second-quarter numbers provided the catalyst for the move.

According to this article, earnings per share came in at 53 cents. That was seven pennies better than last year's figure. But the profit didn't go beyond the expectation of the analyst community, it was only in-line. Could that be why the market is so unhappy today with the stock?

One day after Tiffany (TIF) reported Q1 earnings, the stock is in the red. As of this writing, it is down better than 3% with a little over one hour to go before the market closes up shop. Volume isn't too bad right now.

The luxury retailer is currently trading at $45.32, which is a significant distance from the 52-week high of $52.19. The one-year chart is typical of many stocks these days: there's an uptrend, followed by some resistance near the right side. The resistance is obviously related to the trading problems we've been having.

There are retailers, and then there are retailers. 'Accessible luxury' retailer Coach Inc. (COH), once-again posted a strong earnings quarter despite challenging (to say the least) retail conditions, earning 50 cents per share in the third quarter, above Thomson/Reuters First Call third quarter EPS estimates of 46 cents per share.

Coach earned 36 cents per share a year ago, in the third quarter of fiscal 2009.

The company also said it would double its annual dividend to 60 cents per share starting in July, and added that its board has authorized the purchase of up to $1 billion in shares by June 30, 2012.

As we saw in our earnings preview for Tiffany & Co. (TIF), analysts had big expectations for the company's fourth quarter, and while Tiffany was able to post a very respectable 27% jump in earnings, it fell just a bit short of Wall Street's estimates this morning.

Going into this morning's earnings report, analysts had forecast earnings of $1.13 per share. Actual earnings came in a bit under at $1.10 per share. For the same period last year the company earned 85 cents per share.

Luxury jewelry store chain Tiffany & Co. (TIF) is trading lower today as Wall Street awaits its fourth quarter earnings report on Monday, but by most accounts analysts are expecting to see strong earnings from the company.

Going into Monday's earnings report, analysts are forecasting the company to report $1.13 a share. For the same period last year Tiffany had earnings of $0.85 per share, so if it is able to match analyst estimates it would mark a very respectable 32% jump year over year.

The hotel market may be straining in the United States and Europe under the weight of new capacity financed during the real estate boom, but the situation is much different in Latin America.

According to travel industry research firm PhoCusWright, international, regional and independent hotels are popping up all over the continent, with both large and small projects in the works to tap into growing demand in the region. In the cities, where it's tough to find real estate, old neighborhoods are "reinventing themselves," PhoCusWright reports, in order to take advantage of the market's potential.

Coach Inc. (COH) is one of those plays that makes you smile, due to its sweet-spot market position, and it goes without saying that I'm reiterating my buy rating for the company's shares, first recommended on April 13, 2009, at a price of $18.22.

If you bought COH in April 2009, you're up an impressive 90%. If you didn't, don't fret: there's more upside ahead with Coach.

The first estimates for the holiday shopping season have come in. MasterCard (MA) Advisors unit SpendingPulse, which tracks retail spending, puts the result at a year-over-year increase of 3.6%. This includes all form of payment and does not factor in gas and auto sales. The increase comes relative to the 2008 holiday season, which was the worst season in decades for retailers thanks to the global financial crisis.

Says Kamalesh Rao, director of economic research at SpendingPulse, "Last year the economy and consumer spending were in free fall. This year we're talking about an environment that has stabilized, that has seen a leveling off." But, that doesn't mean it's turned the corner yet. Holiday spending isn't enough to cure what ails us.

It's time to re-enter the retail sector, from an investment standpoint, but only selectively, and a good starting point is Williams-Sonoma Inc. (WSM).

The argument here is that higher-end retail chains like Williams-Sonoma will bounce back sooner than general consumer retail. Hence, the "frugal consumer" trend remains in force, but high-end consumers, encouraged by a recovering U.S. economy, will start to part with a few more bucks at the mall in 2010.

Upscale shoppers aren't doing enough for Saks (SKS) this holiday season. The luxury retailer, which has been struggling with sales for the past two years, is moving into less expensive products as a way to bring customers in the door, even though it's putting its brand at risk. If the wealthy continue to stay at home, Saks will have to look for revenue where it hasn't had to play in the past.

Brand experts, according to a Reuters report, don't think it's a good idea for Saks to stray from its traditional area of expertise. Pushing lower-priced items and using gift cards and coupons to bring people inside -- not to mention discounting -- could cost the company in the long term. Milton Pedraza, chief executive of the Luxury Institute, told Reuters, "All these tactics erode the halo effect of a luxury brand."

MasterCard Advisors (NYSE: MA) service SpendingPulse says luxury and electronics sales headed upward last month, in a pleasant deviation from what became the norm all too long ago. A few other product categories posted gains as well – showing stability, if not a recovery. But, at this stage of the game, we'll take what we can get, right?

Luxury sales, not including jewelry, gained 3.4% year-over-year – that's an increase of $891 million. Last September, luxury goods suffered a 9.4% decline. Yet, this category is still below its September 2005 level of $94 million. Jewelry sales gained 1.2% relative to last year, compared to a year-over-year decline of 5.8% a year ago. Compared to apparel sales, this is a profound turn. In September 2008, the clothing category was off 5.7%, and this September, it was down only 2.9%.

Bain & Co., a leading consulting firm, estimates that luxury goods sales will fall 20% in the first half of 2009 before stabilizing in the second half. In all, Bain expects luxury goods sales will fall 10% for the year. In October, Bain was forecasting a drop of just 7%, but conditions have deteriorated quite a bit since then.

The Wall Street Journal reports (subscription required) that "The U.S., which accounts for roughly a third of luxury-goods sales, is one of the worst-hit markets. Bain expects U.S. sales of high-end clothing, accessories, tableware, cosmetics and jewelry will drop by 15% this year. That compares to expected sales declines of about 10% in both Europe and Japan."

At the beginning of every downturn, it seems that some analyst claims there is a haven for luxury retailers, still, especially the classic retreats of the very, very rich -- like Tiffany & Co (NYSE: TIF). And then: reality. In this current era, "reality" equals the collapse of many of America's most storied financial institutions; the companies whose deal gifts and corporate tokens were, more often than not, wrapped in Tiffany's iconic blue ribbon.

With far fewer investment banks to hold Christmas parties and bonuses not rolling as they typically do, shoppers, it seems, avoided pricey baubles as gifts. Holiday sales were down 21%, Tiffany reported today, and it lowered its forecast for the fiscal year's earnings, down to a range of $2.25 to $2.30 per share. Its fourth quarter ends on January 31, and Tiffany CEO Michael Kowalski expects the depressed luxury retail environment to continue well into fiscal 2009.

This comes following a late November prediction that 2008 EPS would come in as much as 28 cents below analyst's estimates, between $2.30 and $2.50 a share.

Tiffany's stock sank as much as $2.00 per share on the news during the day, but by market close, had rebounded to only a few cents' decline, down 0.23% to $21.95. This may be a buying opportunity, however; after having recorded a five-year low of $16.75 in November, the stock has been climbing slowly up from its nadir. Will luxury look to have its heyday again? Perhaps.

Mastercard (NYSE: MA) has a little unit that looks at consumer spending every month. The view from there is pretty ugly.

According to The Wall Street Journal, "MasterCard SpendingPulse says luxury sales dropped 20% in October from a year earlier." Put another way, the rich are getting poor. Spending on all goods costing more than $1,000 dropped considerably.

The rich are supposed to be able to keep a little money on hand for the holidays. In all likelihood that money was in the stock market. Or, some of the people who drive BMWs lost their jobs as Wall Street has downsized.

What do the numbers say about the middle class and poor? One can guess, that with personal income running flat to down, they will not even be able to buy coal to put in their stockings this holiday.

Santa may as well stay at the North Pole.

Douglas A. McIntyre is an editor at 247wallst.com.