Tiffany reported bigger-than-expected quarterly profit and sales on Thursday, helped in part by higher demand for its fashion and designer jewelry in Japan and lower input costs.
Sales at established stores open for more than a year fell 2 percent, steeper than the 1 percent fall expected by analysts polled by research firm Consensus Metrix.
The company, which gets about 15 percent of its revenue from Japan, saw comparable sales rise 3 percent in the region in the quarter.
Comparable sales in the Americas - its biggest market, fell 1 percent due to lower tourist spending and weak demand across categories other than fashion and designer jewelry.
Net sales rose 3 percent to $959.7 million in the second quarter ended July 31, beating the analysts' average estimate of $930.3 million, according to Thomson Reuters I/B/E/S.
Net income rose to $115 million, or 92 cents per share, in the reported quarter, from $105.7 million, or 84 cents per share, a year earlier.
Analysts had expected the company to earn 84 cents per share.