You can use a function into a repeater like you said, but notice that the DataBinder.Eval returns an object and you have to cast it to a DateTime.
You also can format your field inline:
<%# ((DateTime)DataBinder.Eval(Container.DataItem,"publishedDate")).ToString("yyyy-MMM-dd") %>
If you use ASP.NET 2.0 or newer you can write this as below:
<%# ((DateTime)Eval("publishedDate")).ToString("yyyy-MMM-dd") %>
Another option is to bind the value to label at OnItemDataBound event.