The ruling came in a lawsuit following the end of a collaboration between the two groups. The Netherlands Arbitration Institute sentenced Tiffany to pay Swatch damages after it pressed claims against the U.S. jeweler in December 2011, the world's largest watchmaker said in a statement on Sunday.
Tiffany's said it would record a fourth-quarter charge of $295 million to $305 million as a result of the ruling. It lowered its full-year earnings outlook range to $2.30 a share to $2.35 a share from a previous estimate of $3.65 a share to $3.75 a share.
(Read more: Foxconn saves BlackBerry in bleak Q3)