Shares of Tiffany (TIF - Get Report) were higher in late morning trading on Friday after the luxury jewelry maker's stock rating was upgraded to "market perform" from "underperform" at Boruchow earlier today.
The company's future looks good when you note Cartier brand owner Richemont reported a 5% increase year-over-year in revenue for the holiday quarter on Thursday, the firm said.
The luxury end of the retail market is "strong," TheStreet's Jim Cramer said on CNBC's "Squawk on the Street" on Friday morning.
"The companies that are doing well in the shopping centers are the luxuries," he said. For example, French luxury brand Hermes (HESAY) and Italian luxury fashion brand Fendi (LVMUY) are both doing well.
Tiffany is "starting to really get organized" after naming Mark Erceg as CFO in September of 2016, Cramer said. Erceg was previously serving as executive VP and CFO of Canadian Pacific Railway (CP) since May 2015.
"It's a good situation," Cramer added.
Even though the dollar is very strong right now, it's clear that the rich people are spending, Cramer noted. The wealthy in the U.S. are most likely betting on a tax cut under President-elect Donald Trump.
"I think much like when Reagan was elected president, rich people started spending and you couldn't figure out what they were doing before," he said. "But the interesting thing was that they were hunkering down. And I think that you're going to see wealthy spend more."