The quarterly profit of the New York-based jewelry retailer Tiffany & Company plunged a whopping 62 percent, largely because consumers cut back on luxury purchases leading to a sharp drop in sales, especially in the US. 

Tiffany said on Friday that its $24.3 million, or 20 cents per share, earnings marked a substantial drop from the year-before earning figures of $64.4 million, or 50 cents per share. Nonetheless, with the earnings still matching the Wall Street estimates, the retailer has maintained its profit outlook for the full year.

The company's sales during the quarter - which ended April 30 and was Tiffany's first quarter this fiscal year - tumbled 22 percent from $668.1 million the earlier year to $523.1 million. More disquietingly, the sales at the Tiffany stores opened at least a year in the US plunged 31 percent.

However, reiterating the company's profitability amid the downturn, the Tiffany Chairman and CEO, Michael J. Kowalski, said: "Despite reduced consumer demand in the luxury sector, Tiffany is, and is projected to remain, solidly profitable and will generate substantial cash from operations."

According to analyst Matt Arnold, of Edward Jones, though Tiffany's US sales were worse than anticipated, the company still managed to compensate for the underperformance. Underlining Tiffany's respectable performance, Arnold said the diversification of the company helped it "shine through."