Fossil 3Q Profit Falls, But Co. Raises Guidance

RICHARDSON, Texas (AP) — Watch maker Fossil Inc. said Tuesday its third-quarter profit fell but sales improved at company-owned stores.

The company raised its fourth-quarter and full-year guidance as a result, and shares rose in premarket activity.

Profit for the 13 weeks ended Oct 3 fell 3 percent to $35.3 million, or 52 cents per share, from $36.5 million, or 54 cents per share, in the same period last year.

Revenue fell 7 percent to $381.4 million from $409.8 million last year.

Analysts polled by Thomson Reuters, on average, predicted a profit of 42 cents per share on revenue of $376.9 million.

"Our third-quarter results surpassed our expectations, driven by retail sales stemming from company-owned stores, a more favorable product sales mix and increased expense leverage," said CFO Mike Kovar in a statement.

Fossil, based in Richardson, Texas, now expects fourth-quarter earnings of 82 cents to 86 cents per share, up from previous guidance of 74 cents to 80 cents per share.