Luxury New York-based jewelry retailer Tiffany & Co has posted earnings as of the quarter-ended January 31, 2009.

The company reported that sales were down 20% to $841.2 million from $1.05 billion. Net income for the quarter was down to $31.1 million ($0.25 per share) from $127.4 million ($0.96 per share) a year ago in the same period. Same store sales were down 23% over last year.

The sharp decline in demand as a result of the global economic downturn prompted the jewelry retailer to close its Irdesse pearl chain. Demand for items costing more than $50,000 dropped significantly.

Tiffany CEO Michael Kowalski previously announced plans to cut 10% of the company’s worldwide workforce by the end of the year to deal with the downturn.

Tiffany now forecasts total sales to be down 11% for 2009. Actual sales could fall below that given more tuff economic times projected ahead as consumer confidence dips.

The Tiffany stock today is surprisingly up about 14% to $23.06 following the news in mid-day trading.