Goldman (NYSE:GS) Says Tiffany (NYSE:TIF) Faces Tough Margins in 2011

Tiffany & Co. (NYSE:TIF) has been soaring recently after their earnings report, which was very strong for the jewelry retailer. Still, Goldman Sachs (NYSE:GS) said they see margins getting tougher in 2011.

Goldman said they "think the shares may find some support given the solid top-line results and much better than expected gross margins. However, with both sales and margin comparisons getting tougher in 2011, we are likely to see a slowing EPS growth trajectory."

Net income in the quarter for Tiffany rose to $55.1 million, or $0.43 a share, a gain of 27 percent over the $43.3 million generated last year in the same quarter.

Revenue for the quarter was up 14 percent, coming in at $681.73 million, up from last year's $598.21 million.

Analysts had been looking for revenue of $652.8 million, and earnings of $037 a share.

Same-store sales were up 5 percent and grow margins grew from 54.8 percent to 58.5 percent, an increase of 370 basis points.

EPS for full year 2010 was increased from a range of $2.60 to $2.65 to a range of $2.72 to $2.77.