Tiffany says can handle US economic trouble

NEW YORK Jan 15 (Reuters) - Tiffany & Co (TIF.N) will be just fine even if the United States slides into a recession, and has no plans to temper its store growth rate, the jewelry company's executives said on Tuesday.

Tiffany's comments at the Cowen & Co consumer conference came just four days after it reported a drop in the key U.S. holiday sales, citing a recent pullback in consumer spending.

The data spooked investors, and raised fresh doubts about the luxury sector's resilience to rising energy costs, a stalling housing market and the credit crisis -- problems that have hit middle-class U.S. consumers and retailers catering to them.

On Tuesday, the Commerce Department said retail sales fell 0.4 percent in December, adding to fears that the United States may be facing a recession.

But Tiffany has faced such trouble "square in the face" before and is not ruffled by the possibility, executives including Chief Executive Michael Kowalski said.

The company said it would address its product categories -- ranging from under $100 to over $50,000 a piece -- and be mindful of the ones facing weak sales.

It would also bolster its offering of silver jewelry, Tiffany said.

Tiffany's expansion into international markets, where same-store sales rose 5 percent in the holidays, would help it through tough times, executives said, calling the jeweler "older and wiser."

Its shares were up 1.2 percent at $34.45 on the New York Stock Exchange, from its year-low of $32.85 on Monday.

(Reporting by Aarthi Sivaraman)