NEW YORK (AP) -- Tiffany & Co. reported Friday that strong growth in the Asia-Pacific and European markets helped first-quarter profits rise 19 percent and said that it doesn't expect an improvement in the U.S. until later this year.

The jewelry retailer also raised its profit outlook for the year, based on a promising start, and said that it will open a smaller-store format in the U.S. as part of its worldwide expansion plans.

Tiffany said profits totaled $64.4 million, or 50 cents per share, in the three-month period ended April 30. That compared with $54.08 million, or 39 cents per share, in the year-ago period.

The company's sales rose 12 percent to $668.15 million from $595.7 million in the year-ago period.

The results beat estimates of analysts polled by Thomson Financial who had expected earnings of 40 cents per share on sales of $649 million.

Shares rose 2.7 percent, or $1.29, to $49.03.

"We are pleased to start the year with sales and earnings growth above our expectations," said Michael J. Kowalski, chairman and CEO, in a statement. He added that the strong gain in worldwide sales, despite only a modest growth in the U.S. due to a challenging economy, reflects "the benefit of globally diversified