August 9 - Fossil Inc's quarterly profit beat market estimates on increased sales of its watches and leather products, but the watchmaker forecast a third-quarter profit below expectations.

Fossil handbags.

Second-quarter earnings fell to $51.4 million, or 80 cents a share, from $54.5 million, or 80 cents a share, a year ago.

The company, which sells its namesake brand as well as Michael Kors and Armani, said revenue rose 35 percent to $556.7 million.

Analysts, on average, had expected the company to earn 76 cents a share on revenue of $537.3 million, according to Thomson Reuters I/B/E/S.

Richardson, Texas-based Fossil's shares, closed at $93.89 on Monday on Nasdaq.

(Reporting by Arpita Mukherjee in Bangalore; Editing by Joyjeet Das)