(RTTNews) - The world's second-largest luxury-jewelry retailer Tiffany & Co. (TIF: News ) on Wednesday posted a decline in its third-quarter profit, reflecting soft consumer demand. Further, the company lifted its fiscal 2009 financial forecast sending its shares up more than 6% in the pre market trading.

The New York-based company's third-quarter net income was $43.34 million or $0.35 per share, compared to $43.78 million or $0.35 per share in the year-ago quarter.

Net income from continuing operations declined to $43.31 million or $0.34 per share from $45.56 million or $0.36 per share in the same quarter of last year.

The company noted that the latest quarter results encompassed a $4.0 million charge related to a diamond sourcing agreement and a $5.6 million tax benefit which, together, were a benefit to net earnings from continuing operations of $0.01 per diluted share. The prior year results included a $4.3 million pre-tax charge, or $0.03 per share, related to a write-off.

On an adjusted basis, net income from continuing operations amounted to $41.2 million or $0.33 per share, compared to $48.3 million or $0.39 per share in the three months ended October 31, 2008.

On average, 18 analysts polled by Thomson Reuters expected the company to post earnings of $0.24 per share. Analysts' estimates typically exclude special items.
Quarterly net sales totaled $598.2 million, 3% lower than the previous year's net sales of $616.2 million, but surpassed the $575.09 million revenue consensus estimate of fourteen analysts polled by Thomson Reuters.

On a constant-exchange-rate basis, which excludes the effect of translating foreign-currency-denominated sales into U.S. dollars, worldwide net sales declined 5% and comparable store sales dropped 6%.

Michael Kowalski, chairman and chief executive officer, said, "We were pleased to see that the rate of sales declines in the U.S. lessened as the quarter progressed. At the same time, many countries in Asia-Pacific and Europe achieved considerably better-than-expected sales. These results, combined with ongoing expense restraint, contributed to earnings above our prior expectation."

The company's Americas business fetched third-quarter sales of $303.5 million, down 9% from last year, with comparable U.S. store sales decline of 10%. In the Asia-Pacific region, sales advanced 10% to $225.8 million from a year ago, due to improved results in most countries. On a constant-exchange-rate basis, sales rose 2%, and comparable store sales declined 3% in the most recent quarter.

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