Fossil results beat estimates as North America watch sales rise

Fashion accessory maker and retailer Fossil reported better-than-expected quarterly results as it sold more watches and jewelry in North America, its largest market.

Fossil's shares rose 7.3 percent in extended trading.

The North American wholesale business, which contributes to about 45 percent of overall sales for the company, rose 13 percent to $400.1 million for the fourth quarter ended December 28.

Fossil sells watches ranging from $7 to upwards of $2000, under brands such as Armani Exchange, Marc by Marc Jacobs and Michael Kors.

The Texas-based retailer has been reaping the benefits of a revamp of its jewelry line to the "affordable luxury" image that it has managed to achieve for its watches and handbags.

The company said it expects full-earnings of $6.90 to $7.30 per share for 2014, largely below average analyst estimate of $7.22, according to Thomson Reuters I/B/E/S.

Fossil also said it expects full-year revenue to rise about 12.5 to 14 percent.

The company earned $2.68 per share in the fourth quarter and revenue rose 12 percent to $1.06 billion.

Analysts on average were expecting the company to earn $2.43 on revenue of $1.02 billion, according to Thomson Reuters.