RICHARDSON, Texas (AP) — Fossil's second-quarter net income climbed 12 percent, buoyed by growing demand in Asia and strong watch sales. The performance topped analysts' estimates.

The company lowered its earnings guidance for the year, but it is still above Wall Street's view.

Its shares soared more than 32 percent in morning trading.

Fossil Inc., which also makes accessories, reported net income of $57.3 million, or 92 cents per share, for the period ended June 30, up from $51.4 million, or 80 cents per share, a year ago.

Analysts expected much lower earnings of 78 cents per share, according to a FactSet survey.

Fossil's stock jumped $22.81, or 32.7 percent, to $92.60. The shares have traded in a 52-week range of $62.77 to $139.20. Before Tuesday's sharp rise, the stock was down 14 percent for the year to date.

Revenue increased 14 percent to $636.1 million from $556.7 million. Wall Street forecast $635.9 million in revenue.

Fossil got a $25.2 million boost from watch maker Skagen Designs Ltd., which it acquired in April. Overall watch sales rose 17 percent worldwide, while sales of leather goods climbed 8 percent.

Oliver Chen of Citi Investment Research said in a client note that strong watch sales have helped offset weaker sales of leather products.

The analyst anticipates that Fossil's revenue will continue to improve on new products, tight inventory control and better handbag sales. He maintained a "Buy" rating.

Fossil highlighted its second-quarter growth in Asia, where revenue rose 24 percent to $84.4 million. The region makes up about 13 percent of Fossil's revenue. European revenue rose 4 percent, and North American revenue jumped 17 percent.

Revenue from the company's own stores rose 15 percent to $154.2 million because the company had more stores open and revenue at stores open at least a year rose 1.8 percent. The latter metric is a key gauge of a retailer's health because it excludes results from stores recently opened or closed.

Fossil now expects earnings, stripping out one-time items, of $5.29 to $5.34 per share for the year. It previously predicted $5.30 to $5.40 per share. Wall Street expects $5.28 per share.

For the third quarter, the company anticipates adjusted earnings of $1.15 to $1.17 per share and an 11 percent revenue increase to about $714 million. Analysts expect earnings of $1.37 per share on revenue of $743.4 million.

In the last three months of the year, Fossil expects revenue to rise 16 percent to about $964 million. Wall Street predicts revenue of $968.7 million.

Fossil expects stronger revenue for the last six months of the year when not counting the impact of the stronger dollar. In the current quarter, the stronger dollar hurt profit by 4 cents per share.

When the U.S. dollar is rising against the world's other currencies, companies that sell goods internationally take a hit when converting revenue in foreign currencies back into the dollar.