Sector Snap: Luxury up detail on the results of Tiffany

  Shares of luxury retailers rose Tuesday as upscale jewelry company Tiffany & Co. 's first-quarter results beat analysts' expectations.

The luxury sector has struggled a bit in the recession, but was among those who recovered faster, as economic conditions began to improve. This is mainly because its customer base is high income. The latest wave of new ideas in the industry is supported by the continued recovery of the housing market and rising consumer confidence.

Earlier in the day showed the Standard & Poor's / Case-Shiller 20 cities that house prices rose by 10.9 percent in March compared to a year ago _ the most since April 2006. And the Conference Board, a private research group in New York, said its index of consumer confidence rose to 76.2 in May. This is from a reading of 69.0 in April, the highest level since February 2008.

Positive economic news came as Tiffany grew by 3 per cent of its net profit in the first quarter. The New York-based company, known for its blue boxes, reported adjusted earnings of 70 cents per share on revenue of $ 895.5 million. Analysts surveyed by FactSet expected 53 cents per share on revenue of $ 855.7 million profit.

Randal Konik of Jefferies increased its price target to $ 75 $ 65 Tiffany and said in a client note that the retailer is now looking better.

"The help increase the sales of diamond jewelry to meet the weak activity of money, and we are encouraged by the introduction of new products in all categories of jewelry," he wrote.

Konik receive a "hold" rating.

Tiffany shares was $ 81.25, the highest level in over a year, in early trading. At noon, the shares gained $ 3.28, or 4.3 percent, to $ 79.49.