NEW YORK, Nov. 25 (Xinhua) -- Tiffany & Co. reported a decline in its third quarter sales and profit on Wednesday. But the result still topped the company's own expectations and Tiffany decided to raise full-year outlook.

    Tiffany earned 43.3 million U.S. dollars, or 35 cents per share, for the period ended on October 31. And its revenue dropped 3 percent to 598.2 million dollars.

    Earnings from continuing operations were 34 cents per share, which included a 4-million-dollar charge related to a diamond sourcing deal and a 5.6 million-dollar tax benefit.

    The New York-based luxury retailer continued to see recession hit on its business as shoppers cut back on expenditures on expensive jewelry. But Tiffany is optimistic as its U.S. sales declines are slowing and overseas sales are in a better shape than expected.

    Tiffany lifted its full-year earnings from continuing operations guidance to a range of 1.88 to 1.98 dollars per share. Its previous forecast was for a profit of 1.65 to 1.75 dollars per share.

Special Report:  Global Financial Crisis