NEW YORK  - Tiffany is adding some rare sparkle to the beaten-up U.S. retail sector. The jewelry chain’s shares hit a record high on Wednesday morning after it beat quarterly earnings estimates and upgraded its outlook. New boss Alessandro Bogliolo is finding fresh luster with cost discipline, sharper marketing and new products. It’s a formula other retailers will struggle to match.

Barely a year ago Tiffany was floundering under the weight of a tired product lineup, a strong dollar and even the massive security presence around its flagship New York City store, which is just down the block from President Donald Trump’s home. But former Diesel and Bulgari executive Bogliolo hasn’t wasted any time since taking the top job in October.

He has brought together the firm’s designers and engineers in a new workshop in a bid to trim costs, foster innovation and speed up the introduction of new products. A new marketing campaign around the slogan “Believe in Love” appears to be working, judging by an 11 percent rise in engagement jewelry sales in the latest quarter. And the company this month launched a floral-patterned line of jewelry, the first signature touch from new artistic director Reed Krakoff.

Most of those initiatives have yet to pay off, but the company’s results are already starting to shine. Comparable-store sales in the United States, which is nearly half of the business, were up a healthy 7 percent – it didn’t hurt that Melania Trump has left New York to join her husband in the White House. China led a 28 percent gain in Asia.

Bogliolo is also revving up his digital offering, overhauling the company’s own website and signing a deal with Farfetch.com to sell jewelry in more than three dozen countries. It was enough to send Tiffany stock soaring 20 percent to just over $122 by midday.

Other retailers could only look on in envy. Target beat analysts’ expectations with sales growth of more than 3 percent in the first quarter but heavy digital and delivery investments to keep pace with Amazon and Walmart depressed margins and its stock price. Lowe’s blamed poor weather for its first-quarter earnings miss. It’s placing its turnaround hopes on Marvin Ellison, whom the company lured from J.C. Penney on Tuesday. He will be hard-pressed to keep pace with Bogliolo.

CONTEXT NEWS

- Tiffany on May 23 reported sales rose 15 percent in the three months ended April 30 from the same period a year earlier, to $1 billion. Earnings increased 53 percent to $142 million.

- At $1.14 a share, earnings exceeded the consensus estimate of sell-side analysts of 83 cents.

- The company raised its earnings forecast for the fiscal year ending Jan. 31, 2019, to $4.50 to $4.70 a share, compared with a previous range of $4.25 to $4.45.

(Editing by Antony Currie and Amanda Gomez)

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