What happened

Shares of Tiffany (TIF) outpaced the market last month by rising 11%, compared with a 1.8% uptick in the S&P 500, according to data provided by S&P Global Market Intelligence.

The boost added to a strong 2019 so far for the luxury goods specialist, with shares up 33% year to date while the broader market is up 15%.

A woman wearing luxury jewelry.

Image source: Getty Images.

So what

Tiffany's late-March earnings report contained few surprises for investors. Sales slipped into positive territory to modestly trail management's reduced outlook. Executives again blamed volatile spending by Chinese tourists for the shortfall, but also highlighted major achievements in the broader fiscal year including record sales and rising profitability.

Now what

CEO Alessandro Bogliolo and his team are predicting another record sales year in 2019, with gross profit margin improving as well. However, investors will likely have to wait until the second half of the year before those positive trends become clear. That's because Tiffany's outlook implies that softer demand and increased spending will keep the company in the red over the next six months or so. The stock's recent rally suggests investors are confident that this trend will reverse itself just in time for the 2019 holiday shopping season.