Tiffany & Company (TIF - Analyst Report), the designer and retailer of fine jewelry, came out with first-quarter fiscal 2015 results, wherein earnings of 81 cents per share fared much better than the Zacks Consensus Estimate of 69 cents, while declining 16.5% year over year.

Management still anticipates a minimum growth in earnings per share during fiscal 2015 over $4.20 earned in fiscal 2014. For the second quarter, earnings are expected to decline at a more moderate rate, compared to the first quarter, followed by double digit increases in the remaining two quarters.

Earnings Estimate Revision: The Zacks Consensus Estimate has witnessed a downtrend for fiscal 2015 in the last 30 days. In the trailing four quarters, including the quarter under review, the company outperformed the Zacks Consensus Estimate by an average of 7.1%.

Revenues: Tiffany generated net sales of $962.4 million that surpassed the Zacks Consensus Estimate of $913.5 million but fell 5% due to sluggishness witnessed across Japan. Moreover, foreign currency headwinds adversely impacted the results. In constant currencies, net sales rose 1%, whereas comparable-store sales inched down 1%.

Key Events: Tiffany announced the opening of 3 new stores in the first quarter, including 2 in China and 1 in the U.S.

Zacks Rank: Currently, Tiffany carries a Zacks Rank #3 (Sell) which is subject to change following the earnings announcement.

Stock Movement: Tiffany’s shares are up 6.4% during pre-market trading hours following the earnings release. Clearly, a positive sentiment is palpable among investors following the better-than-expected results.

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