UPDATE 3-Fossil Q3 beats estimates, sees solid Q4

* Q3 EPS $0.52 vs est $0.42

* Raises Q4, FY profit view to above Wall Street estimates

* Says accessory business outside U.S. to gain momentum

* Sees sales of Fossil brand watches improving in Q4 * Shares rise as much as 11 pct (Recasts; adds conference call details, analyst comments, updates share movement)

By Shradhha Sharma

BANGALORE, Nov 10 (Reuters) - Watchmaker Fossil Inc (FOSL.O) posted a quarterly profit that outpaced market estimates and its own forecast, buoyed by stronger sales at company-owned stores, and said its international accessories business would continue to gain momentum.

The Richardson, Texas-based company was one of the top percentage gainers on Nasdaq on Tuesday -- its shares rising as much as 11 percent to touch their year high at $32.07.

Of the 208 full-price accessory stores Fossil opened in the first nine months of the current fiscal year, more than half are located outside the United States. Comparable sales at Fossil's European accessory stores rose 9.5 percent, and remain its main target market for new store growth in the near term, Chief Financial Officer Mike Kovar said on a conference call with analysts. [ID:nWNAB3809]

Baldwin Anthony Securities analyst William Baldwin said, "The only thing doing well in Europe is their full price accessories business. That's the real gem of the company right now and that's where they are putting their new stores.