Tiffany & Co. (TIF - Get Report) posted disappointing earnings Wednesday, but Macquarie analysts are optimistic that the company will improve its performance as tourism numbers increase.

The high-end jewelry company earned 64 cents per share in its first quarter, below analysts' expectations of 68 cents per share and a 15% decline year-over-year. Sales of $891 million, a 7% decline, also missed the consensus estimate of $915 million.

In the Americas, same-store sales, weakened by a strong dollar, fell 9%.

Despite the results, Macquarie analysts Laurent Vasilescu and Dan Isaacson believe that Tiffany's performance will improve soon.

"We are still waiting for green shoots regarding tourism," they wrote in a Wednesday note.

Luxury goods have performed consistently poorly, the analysts asserted. For example, Swiss luxury goods group Richemont, which owns Cartier, reported bleak April numbers last week. Sales that month fell 18% on a reported base and 15% on a constant basis, contributing to a 23% decline in operating profit year-over-year to €2.06 billion ($2.31 billion). A 26% increase in sales in mainland China could not offset negative results across the Asia Pacific region. The only region reporting sales growth in April was the Middle East and Africa.

"We attribute the overall lower sales to softness in domestic customer spending in many U.S. markets as well as lower spending by foreign tourists of many nationalities in New York and other high tourism markets," Tiffany VP for investor relations Mark Aaron said on an earnings call.

Eventually, Vasilescu and Isaacson wrote, "we expect the strength of the U.S. dollar will ease, tourism will readjust itself and the luxury space will rebound," with Tiffany "uniquely positioned to recapture those tailwinds."

They were particularly encouraged with strong results out of Japan, where Tiffany reported a 4% increase in same-store sales. That increase was "largely driven by local consumers, which we find encouraging," they noted.

Similarly, although same-store sales declined 14% in Europe, down from a 17% increase a year earlier, the UK outperformed the rest of the continent. Vasilescu and Isaacson said they were "encouraged" by that result, pointing out that the UK accounts for 40% of Tiffany's European sales and that fears of terrorism on the continent were stifling spending.

Tiffany shares closed up slightly at $63.89 per share. The company has a market cap of about $ 8 billion.

The analysts reiterated their Outperform rating on Tiffany's stock and lowered their price target to $85 from $88.