Big Quarter at Tiffany

Tiffany (TIF Quote - Cramer on TIF - Stock Picks) beat first-quarter earnings estimates as sales soared 26% from a year ago at its flagship Fifth Avenue store.

The New York-based jeweler made $50 million, or 36 cents a share, for the quarter ended April 30, up from the year-ago $43 million, or 30 cents a share. Sales rose 15% from a year ago to $621 million, with currency-adjusted sales up 14% and same-store sales up 8%.

Analysts were looking for a 35-cent profit on sales of $608 million.

"We are now one month into the second quarter and sales in May are achieving our overall expectation," said CEO Michael Kowalski. "Strong sales growth in the U.S. and in most international markets is offsetting continued weakness in Japan. Based on our planned initiatives and a continued favorable retail environment, our full year 2007 expectation now calls for approximately 12% sales growth, an improved operating margin and earnings per diluted share in a range of $2.10 - $2.15."

Analysts surveyed by Thomson Financial were looking for a $2.10-a-share profit.

The company also said it plans to expand its wholesale watch distribution business in 2008.