Fossil 3rd-quarter profit rises 20 percent

Profit rose to $36.5 million, or 54 cents per share, from $30.5 million, or 43 cents per share, in the same quarter a year ago.

Sales rose 14 percent to $409.8 million from $358.6 million.

Analysts polled by Thomson Reuters expected profit of 49 cents per share and sales of $402 million.

"Our strong third-quarter results reflect the success of our key initiatives to grow our Fossil brand, increase our international presence and expand our direct-to-consumer segment," Chief Financial Officer Mike Kovar said in a statement.

The translation from foreign currencies into a weaker dollar helped boost profit.

Sales jumped nearly 16 percent in the international wholesale division, helped by a 12 percent gain in wholesale sales in Europe.

Direct-to-consumer sales rose 22 percent.

Separately, Fossil cut its fourth-quarter outlook based on a weaker economy and a dollar which has strengthened since the third quarter ended.

Shares of Fossil fell 88 cents, or 5.9 percent, to $14.10 in premarket activity. The stock has ranged from $14.52 to $46.25 over the past year.