Tiffany Results Better Than Expected

Tiffany & Co.'s earnings and revenue fell less than expected in its first quarter as a key sales metric grew across nearly every region, despite the continued impacts of a strong U.S. dollar.

Shares of Tiffany, down 13% over the past 12 months, gained 7.1% to $91.60 in premarket trading as the jeweler also backed its full-year outlook.

Tiffany's foreign revenue has been hit in recent months by a strengthening U.S. dollar, which also dented tourist spending in the U.S. The company's Japanese business also has been hit by weak economic conditions.

The company said in March that it expected to face pressure in the first half of the year followed by double-digit earnings growth in the latter half. Tiffany maintained its outlook for the year Wednesday.

For the quarter ended April 30, Tiffany posted earnings of $104.9 million, or 81 cents a share, compared with $125.6 million, or 97 cents a share, a year ago.

Tiffany had forecast a 30% earnings decline.

Sales fell 4.9% to $962.4 million, coming in above the company's March forecast for a 10% decline. Excluding foreign-exchange impacts, sales would have been up 1%.

Analysts projected 70 cents a share in earnings and $918.7 million in revenue, according to Thomson Reuters.

In Tiffany's Americas division, same-store sales were up 1%, as strong sales to U.S. customers helped offset lower foreign tourist spending.

The Asia-Pacific division had a 2% increase in same-store sales, helped by growth in China, Australia and Singapore. In the company's Europe division, same-store sales grew 17% as foreign tourists spent more abroad.

However, at the Japan division, same-store sales dropped 24%, hurt by continued weakness and a difficult comparison to a strong prior-year period.

Write to Chelsey Dulaney at [e-mail]

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