On Wednesday the company said it planned to open the smaller stores, called Tiffany & Co. Collections, at a rate of three to five a year.

The stores will offer a wide range of jewelry, including silver jewelry, but not engagement jewelry.

Stifel Nicolaus & Co. analyst David Schick said the stores should offer a higher return on capital, since the product mix will focus on higher-margin silver jewelry, and exclude lower-margin engagement jewelry and expensive "statement" pieces.

He affirmed his "Buy" rating and $64 price target on the stock.

Buckingham Research Group analyst Barbara Wyckoff on Thursday raised her third-quarter earnings estimate for Tiffany by a penny. She now expects earnings for the quarter to be 25 cents per share, helped by a 10 percent rise in same-store sales.

Wyckoff also said the smaller-format stores should lead to higher sales productivity.

"Margins should exceed full-line stores due to mix, lower store build out costs and inventory needs," she wrote.

She affirmed her "Accumulate" rating and raised the price target by $2 to $62.