Jeweller Tiffany & Co reported a better-than-expected profit for the “holiday quarter” as it raised prices and benefited from lower prices of diamonds, gold and silver.

Shares of the company rose as much as 4 per cent in US trading yesterday.

Weakness in the global economy and a strong dollar have hurt Tiffany and other luxury retailers such as Nordstrom Inc and Neiman Marcus Group as tourists shy away from buying high-end items.

The company warned that it expected profit per share to fall by 15-20 per cent in the current quarter and by 5-10 per cent in the second quarter, based on the trends seen so far.

However, earnings are expected to start growing from the second half of the year ending January 2017, Tiffany said. Its net income declined 17 per cent to $163.2 million, or $1.28 per share, in the quarter ending January 31st.

Sales fell 5.6 per cent to $1.21 billion, the fifth straight quarter of decline.

Reuters