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WHEN WE last visited jeweler Tiffany & Co. (Nov. 11, 1991), the country was in a recession, diamond shopping was the furthest thing from consumers' minds and earnings were on the decline. Has the Tiffany Necklace on sale returned? Brighter than expected, thanks to some shrewd marketing. Chief Executive William Chaney has downplayed Tiffany's upper-crust image and focused on luring a relatively downscale crowd. That includes putting out "how-to" diamond and pearl buying guides and advertisements to inform the wary that Tiffany diamonds start below $1,000.In Japan, Tiffany has slashed prices from levels once nearly double New York rates. Last quarter, sales in Japan were up 11%.Revenues should rise 15% in the year to next January, to $787 million, and earnings 23%, to $2.27 per share. Tiffany's stock, at a recent 42, is up 33% since May.As evidence that some affluent consumers have tired of simpler lifestyles, sales of designer clothing and expensive jewelry are hot in 1995, retailers say, after several lukewarm years. A rise in international tourism is fueling the growth, but marketers say it may also reflect baby boomers' renewed desire to stuff their closets with easily recognizable status symbols. Swiss watch maker TAG Heuer and Tiffany & Co both report a significant rise in US sales so far in 1995.Conspicuous consumption may be coming back in style.Sales of Tiffany Note on sale clothing and expensive jewelry are hot, retailers say, after several lukewarm years. Fueling the growth is a rise in international tourism. But marketers say it may also reflect baby boomers' renewed desire to stuff their closets with easily recognizable status symbols.At a time when sales at many department stores and discount chains are unimpressive, Swiss watch maker TAG Heuer SA says U.S. sales so far this year are up 25%, compared with last year. And at Tiffany & Co., sales at U.S. stores open at least a year rose 15% during its most recent fiscal quarter.

Sales have been so strong at Ferragamo's U.S. boutiques that shoppers are limited to five handbags and 10 pairs of shoes each. Overall, Ferragamo's U.S. sales are running 35% ahead of last year's, according to Massimo Ferragamo, president of U.S. operations for Ferragamo Worldwide.Marketers spent millions in the 1980s pitching their products as badges of affluence for unapologetic yuppies. But by the early 1990s, as baby boomers aged and had children of their own, marketing experts predicted, family values would replace the quest for self gratification. In an uncertain economic climate, overt Tiffany Pendant on sale would become less fashionable: Even wealthy shoppers would choose Gap over Gucci and shun ostentatious brands like Rolex and Louis Vuitton.But it turns out some affluent consumers have tired of the simpler lifestyles. "Women are asking themselves, `What's wrong with spending money on myself? How many more T-shirts do I need?'" says Michael Gould, chairman and chief executive of Federated Department Stores Inc.'s Bloomingdale's chain.Certainly, affluent consumers these days are simply more affluent. Analysts look at the 20% rise in the Dow Jones Industrial Average this year as an indication that the rich must be feeling a little richer. "There's a sense of wealth, and it's showing up in luxury goods," says Carl Steidtmann, director of research for Management Horizons, a unit of Price Waterhouse L.P.

Clifton Stone, associate general counsel at Smith Barney Inc., a unit of Travelers Group, says he will spend 50% more on apparel and accessories for himself this year, or about $3,000 on suits, shirts, ties and shoes. "Once you start treating yourself to certain quality items, you want to replace what you have with better stuff," he says. Among his favorites: ties from Milan designer Ermenegildo Zegna that cost $105.Retailers believe attitudes are somewhat different now than in the '80s. This time, "it's not about having as much as you can," says Marion Davidson, director of marketing and Tiffany Ring on sale for Hermes SA. "It's about having a few things that are exceptional. A Gap dress with a Hermes handbag and scarf are all you need."Retailers say today's designer-goods shoppers are thinking investment, not splurge, when they make big-ticket purchases. Robert DiNicola, chairman of Zale Corp., sees a higher "comfort level" this year among customers at the company's Bailey, Banks & Biddle jewelry stores. The most popular diamond tennis bracelets cost between $599 and $699, compared with a $299 average price last year, he says. Customers nowadays are happy to trade up as long as they feel like they're getting their money's worth, he says.Donna Leone, a partner at a New York investment-advising firm, says she expects to spend about 10% more on her fall wardrobe this year than last. Already, she says, she has bought a four-piece designer suit for "several thousand" dollars. "I just like the classic designs," she says. "They last forever."