A model poses backstage ahead of the Tiffany & Co. show during the Audi Fashion Festival in Singapore on May 16, 2011. - 

Updated (11:30 am EST): Tiffany & Co. reported higher than expected earnings for the quarter this morning. Revenue rose 9.3 percent to $895 million, beating out Wall Street expectations.

Analysts say the company has struggled in the U.S. amid economic stagnation, but is making strides in Asian markets. 

"Many Chinese consumers have adopted the Western tradition of the diamond engagement ring," says David Wu, a luxury goods analyst at Telsey Advisory Group. "The engagement business there is very strong."

But Wu says a "slew" of emerging fashion jewelry brands are taking some of Tiffany's sparkle away in the U.S. Kate Spade and Michael Kors, among others, have introduced their own brand of pricey -- but not too pricey -- jewelry. 

Luxury goods have proven highly susceptible to economic woes in recent months.

"Storms in New York, fiscal cliff, unemployment, just general macro worries," says Paul Swinand, an equity analyst with Morningstar. 

Both analysts say the sale of luxury goods now appears to be on an upswing. 

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