A rendering of Tiffany's new flagship Shanghai store.

A strong dollar, the diminishing spending power of  tourists visiting the U.S. and continued unrest in Hong Kong are all weighing on Tiffany & Co.

The jeweler reported global net sales declined 3 percent to $1 billion in the second quarter ended July 31, while comparable sales slid 4 percent.

Analysts had predicted net sales of $1.06 billion and a 1.3 percent comparable sales drop, according to Refinitiv.

At $136 million, net earnings were 6 percent lower than the prior year’s $145 million, reflecting lower operating margins and a higher effective income tax rate. Net earnings per diluted share were $1.12 versus $1.17 in the prior year.

This was better than the $1.04 Wall Street had expected, which sent Tiffany’s stock up 3.4 percent to $85.50 in pre-market trading. On Tuesday, it closed down 0.5 percent to $82.67, around 35 percent lower than 12 months ago.

Alessandro Bogliolo, chief executive officer of Tiffany, said: “With the tough comparison to last year’s strong performance in the first half behind us, and in spite of the headwinds of weak demand from foreign tourists, currency exchange rate pressures and continuing business disruptions in Hong Kong, we are actively managing what is in our control and positioning our brand to win — accelerating new product introductions and keeping a visible profile.”

On a regional basis, net sales in the Americas decreased 4 percent in the second quarter, with management attributing that decline to lower spending by foreign tourists and, to a lesser extent, local customers.

In Asia-Pacific, net sales decreased 1 percent, while in Europe, they declined 4 percent.

Nevertheless, management maintained its guidance for the fiscal year ending Jan. 31 that worldwide net sales would increase by a low-single-digit percentage over the prior year, while net earnings per diluted share would rise by a low- to mid-single-digit percentage.