Aug 11 (Reuters) - Fossil Inc (FOSL.O) reported a second-quarter profit that topped market estimates, helped by tighter expense controls and better inventory management, and raised its full-year earnings outlook, as the watchmaker expects fourth-quarter sales to pick up.

www.fossil.com

The company, which also sells jewelry, leather goods, belts, sunglasses and apparel, expects full-year earnings of $1.63 to $1.73 a share. It had earlier forecast earnings of $1.50 to $1.70 a share.

For the fourth quarter, the company currently expects reported net sales in a range of flat to positive 3 percent.

Net income fell to $16.6 million, or 25 cents a share, in the second quarter, from $25.1 million, or 36 cents a share, a year ago.

Fossil, known for its namesake watches and Relic handbags, said sales fell 11 percent to $315.9 million.

Analysts on average were expecting a profit of 20 cents a share before items, on revenue of $321.5 million, according to Reuters Estimates.

Fossil has undertaken several measures to contain costs, including selective layoffs, and salary reductions for all executive officers and senior vice-presidents, to contend with a weak sales climate.

Shares of the company were trading up 42 cents at $28.14, before the bell on Tuesday 11 August.

(Reporting by Viraj Nair in Bangalore; Editing by Maju Samuel)