RICHARDSON (AP) – 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 reversed course and fell $4.88, or 5.9 percent, to $78.63 in regular morning trading.

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.

Kovar said the company based in Richardson, Texas, will look to build its international watch business in fiscal 2011, with particular emphasis on Asia. Fossil plans to open 80 to 85 stores globally.

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.

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