High-end jeweler Tiffany (NYSE:TIF) isn't quite the jewel of the stock market this week, following the release of its first-quarter results.

For the period, the company's net sales fell by 7% on a year-over-year basis to $891 million. Net profit declined more steeply, by 17% to $87 million, or $0.69 per share.

Image source: Tiffany.  

On average, analysts believed Tiffany would post a top line of $915 million, and EPS of $0.68.

The company also updated its full-year guidance. It now anticipates that EPS will fall at a mid-single-digit percentage rate from 2015's result.

In spite of the Q1 declines, the company elected to raise its quarterly dividend. It will pay $0.45 per share, an improvement of 12.5% over its predecessor. This is to be handed out on July 11 to shareholders of record as of June 20.

Does it matter?

Tiffany's shares slid, although not too drastically, on the news of the disappointing quarter. This is likely because the company has been struggling for some time, and a weak quarter was hardly unexpected.

A persistently strong dollar is a key culprit in the top- and bottom-line slides; a powerful greenback results in fewer dollars when customers pay in local currency. At the end of Q1, most of Tiffany's 308 stores were located abroad. Compounding that was enduring economic sluggishness in Europe and a slowdown in China.