Upscale jeweler Tiffany reported an unexpected rise in second-quarter profit, driven by lower raw material costs, price hikes and the sale of more high-margin jewelry.
The company's shares rose 4.5 percent to $72 in premarket trading on Thursday.
However, Tiffany's sales dropped for the seventh straight quarter, and missed analysts' estimates, due to lower tourist traffic, which has also dented sales at other luxury retailers such as Michael Kors and Kate Spade.
Signet Jewelers, which sells jewelry at lower prices than Tiffany, on Thursday reported an unexpected drop in comparable sales for the quarter due to weaker demand for its Sterling and Zale lines.
Tiffany's net income inched up to $105.7 million, or 84 cents per share, in the quarter ended July 31 from $104.9 million, or 81 cents per share, a year earlier.