Fossil now expects strong holiday sales to produce 4th-qtr profit higher than it forecast

Fossil expects to beat realier 4Q profit outlook

RICHARDSON, Texas — Watch and accessories maker Fossil Inc. said Thursday that it expects its fourth-quarter profit to be higher than the top of the range it forecast because its sales were better than expected.

The company now anticipates sales in the period that ended Jan. 2 to tally between $520 million and $525 million, up from $497 million to $506 million.

Analysts polled by Thomson Reuters predict revenue of $503.1 million.

Fossil said stronger U.S. wholesale shipments and increased sales in its direct-to-consumer division helped sales.

The company now expects its profit to exceed the range it forecast earlier of 82 cents to 86 cents per share. Analysts forecast 85 cents per share. These estimates normally exclude one-time items.

Executive Vice President and Chief Financial Officer Mike Kovar said in a statement that holiday sales topped expectations, partly because it introduced new watches. He also cited strong brand and customer service.

Fossil reports its fourth-quarter results Feb. 16.

The company’s stock was up 4 cents to $34.23 in morning trading after touching a fresh 52-week high of $34.84.