Upscale jewelry store Tiffany & Co. is feeling the drop in Japanese visitors at its Hawai'i stores, where a decline in sales served as a drag on the New York-based company's fourth-quarter earnings.

U.S. sales were up in most markets but declined in Hawai'i and Guam, because of lower sales to Japanese travelers, the company said yesterday. Sales were up in most international markets but were weaker in Japan, which represents 49 percent of the company's international retail sales. Total retail sales in Japan were flat, as an increase in prices offset a decline in unit volume.

In Hawai'i, Tiffany has stores in Waikiki and at Ala Moana Center on O'ahu, in Wailea and Whaler's Village on Maui, and at the Waikoloa Beach Resort on the Big Island.

The decline in Hawai'i sales "reflects the Japanese market," said John Geppert, vice president of the O'ahu market for Tiffany & Co. "It wasn't dramatic," he added.

The state Department of Business, Economic Development and Tourism reported the Japanese visitor count dropped 9.4 percent in 2006 to 1.4 million.

Tiffany's earnings for the quarter ended Jan. 31 were nearly unchanged at $140.5 million, or $1.02 per share, from $140.3 million, or 97 cents per share, during the same period last year.

There were 138.3 million diluted weighted-average shares outstanding in the quarter, compared with 145.3 million a year ago.

Revenue grew 15 percent to $986.4 million from $858.4 million in the year-ago quarter.

Analysts polled by Thomson Financial expected net income of $1.05 per share on revenue of $979.1 million.

Same-store sales, or sales in stores open at least one year, grew 8 percent worldwide, excluding the effect of foreign currency translation, due to more transactions and higher average amount spent per transaction. Same-store sales are considered the industry standard for measuring a retailer's health.

"Sales growth in the quarter ranged across many jewelry categories and price points," said Mark Aaron, vice president of investor relations. "From silver jewelry under $500 to diamond jewelry over $50,000. However, the largest percentage sales growth was at the high end in both the quarter and the year."

U.S. retail sales grew 13 percent to $506.9 million, and international retail sales grew 15 percent to $350.6 million during the quarter.

The Associated Press contributed to this report.

Reach Robbie Dingeman at rdingeman@honoluluadvertiser.com.