Fossil Inc.'s fiscal fourth-quarter net income climbed 38 percent, benefiting from strong sales of its namesake products and a surge in online purchases.
The watch and accessories maker also said Tuesday that it expects its first-quarter earnings will beat Wall Street's current estimates.
Fossil's stock rose as high as $85.50 in pre-market trading but later reversed course and fell $3.76, or 4.5 percent, to $79.75.
Fossil reported net income of $96.7 million, or $1.46 per share, for the period ended Jan. 1. That's up from $70 million, or $1.03 per share, a year ago.
This easily topped the $1.32 per share that analysts surveyed by FactSet predicted.
Revenue increased 33 percent to $701.1 million from $527.8 million, beating Wall Street's estimate of $649.8 million.
Executive Vice President and Chief Financial Officer Mike Kovar said in a statement that sales of all Fossil branded products rose 24.4 percent, while online sales increased 56.5 percent.
Fossil said its full-year earnings jumped 83 percent to $255.2 million, or $3.77 per share, from $139.2 million, or $2.07 per share, in the previous year. Full-year revenue climbed 31 percent to $2.03 billion from $1.55 billion.
The company predicts fiscal 2011 earnings of $4.22 to $4.32 per share, with revenue up 19 percent to 21 percent -- roughly between $2.42 billion and $2.46 billion. For the first quarter, Fossil anticipates earnings of 62 cents to 65 cents per share, with revenue rising 28 percent to 30 percent.
Analysts expect full-year net income of $4.23 per share on revenue of $2.26 billion and first-quarter earnings of 61 cents per share on revenue of $456.9 million.