U.S. jeweler Tiffany & Co. reported its worldwide sales dropped 21 percent during the holidays as consumer spending diminished.

The leading jewelry retailer in the country said sales in November-December 2008 dropped to $687.4 million compared to $867.3 million in the same period of 2007.

Tiffany predicted full year earnings of $2.25 to $2.30 a share, excluding charges, and sales of about $2.85 billion, down from a previous forecast of $2.30 to $2.50 per share given in November.

In August, it had expected a profit of as much as $2.92 a share. The fourth quarter ends Jan 31.