(Reuters) - Watchmaker Fossil Inc (FOSL.O: Quote, Profile, Research, Stock Buzz) posted a better-than-expected quarterly profit, driven by strong international sales, and boosted its full-year earnings forecast, sending its shares up as much as 14 percent.
The company said it entered into a license agreement with Donna Karan Studio LLC to develop and distribute a line of women’s and men’s fashion jewelry under the DKNY label.##3##
It expects distribution to start during the third quarter.
Fossil, known for its namesake watches and Relic handbags, reported a profit of $25.1 million, or 36 cents a share, for the second quarter ended July 5, compared with $14.7 million, or 21 cents a share, a year earlier.
The quarter benefited from lower effective tax rate and net pretax foreign currency gains of 6 cents a share, the company said in a statement.
Analysts on average expected earnings of 25 cents a share, before special items, according to Reuters Estimates.
Fossil, which derives a significant portion of its sales from international markets, said net sales rose 15 percent to $353.2 million. Analysts expected $346.9 million.
International wholesale sales rose 9.5 percent, excluding the impact of currency conversion, due to higher sales volume of its namesake and licensed brand watches.
Sales grew 3 percent in Europe, while other international sales jumped 21.4 percent, excluding currency impact, Fossil said. Continued…
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