Tiffany & Co. projected 2006 earnings below Wall Street forecasts, while reporting a 6 percent gain in same-store sales at its U.S. stores during the holiday period. The New York-based upscale jewelry retailer also narrowed its full-year profit range for fiscal 2005 Tiffany said total worldwide sales rose 6 percent to $712 million from Nov. 1 through Dec. 31, compared with $673.8 million a year ago. On a local currency basis, sales rose 9 percent. Total sales at U.S stores rose 8 percent to $386 million. U.S. sales at stores open at least a year, or same-store sales, increased 8 percent at Tiffanys branches, while falling 1 percent at its New York flagship store. For fiscal 2006, the retailer forecast earnings of $1.77 to $1.82 per share. That compares with an average analysts' estimate by Thomson Financial of $1.84 per share. Tiffanys also said it expects a 10 percent increase in total sales during 2006 and a 12 percent gain in earnings before income taxes. The retailer also estimated net income for fiscal 2005, which ends Jan. 31, of $1.60 to $1.62 per share. It previously forecast profit of $1.55 to $1.65 per share. Thomson Financial analysts estimated earnings of $1.64 for fiscal 2005. Tiffanys said total sales outside the U.S. fell 1 percent to $240.8 million in the holiday period. On a constant-exchange-rate basis, the sales rose 8 percent because of a 7 percent surge in sales in Japan and growth in most other markets. On the same basis, sales at stores opened at least a year outside the U.S. increased 6 percent, including 7 percent in Japan and 11 percent in other Asia-Pacific markets. Direct marketing sales rose 14 percent to $63.66 million on higher Internet sales. Other sales rose 14 percent to $21.48 million mostly because of higher wholesale diamond sales. "We were extremely pleased that holiday sales growth was broad-based geo-graphically and in various jewelry categories. Diamond jewelry sales continued to be especially strong," said Michael J. Kowalski, chairman and CEO in a statement.