NEW YORK (TheStreet) -- Luxury goods sales are proving resilient in an otherwise volatile market. With the holiday season in full swing, luxury goods stores are reporting explosive sales. This trend is expected to continue through the holiday season and into the New Year.Bain & Company forecasts 18% growth for watches and jewelry sales in 2011 as consumers are increasingly migrating from unbranded luxury purchases to branded purchases. The firm forecasts 14% growth for brand-owned stores, which is 50% higher than the increase forecast for third-party retailers, and estimates that direct-owned boutiques now represent 30% of luxury sales worldwide. The luxury good finds a good market in Middle East, as Chinese customers in Gulf have been ranked as the world's No.2 luxury customers behind Americans, according to consultancy Bain & Co. Emerging markets -- such as China, Brazil and the Middle East -- are transforming the luxury industry, with total sales in 2011 expected to top $265 billion. Euromonitor predicts the value of the luxury goods market in the UAE market to increase by 16% in 2011 to $2.31 billion. The World Luxury Association anticipates notable growth for luxury goods in emerging markets citing improved consumer spending power. China is likely to be the key driver with sales in the country expected to reach $14.6 billion in 2012. Based on average estimates of analysts polled by Bloomberg, these five stocks have potential upsides ranging from 15% to 65%, with average buy and average hold guidance of 63% and 34%, respectively.