Jeweler Tiffany posts first increase in sales in 8 quarters

Shoppers carry Tiffany bags while walking on Fifth Avenue in New York.
Mark Kauzlarich | Bloomberg | Getty Images

Tiffany reported its first rise in sales in eight quarters as strong sales in Japan and China more than offset a decline in the United States, its biggest market.

Shares of the company, which makes the iconic "Tiffany Setting" diamond engagement ring, rose 3.7 percent to $81.00 in light premarket trading on Tuesday.

"Our business in Japan performed well, which we attribute to spending by domestic consumers," Chief Executive Frederic Cumenal said in a statement.

Sales in China rose by "double-digits," Tiffany said.

Sales at established stores fell 2 percent in the third quarter ended Oct. 31.

Analysts on average had expected a 2.8 percent drop, according to research firm Consensus Metrix.

Tiffany's net sales rose slightly to $949.3 million from $938.2 million a year earlier.

Net income rose 4.5 percent to $95.1 million or 76 cents per share.