UPDATE 1-Weight Watchers net income down on VAT tax ruling

(Recasts, adds estimates, sales, outlook)

SAN FRANCISCO, July 31 (Reuters) - Weight Watchers International Inc (WTW.N) said on Thursday that quarterly net income fell, as an adverse ruling over the imposition of UK value added tax crimped results.

The company's adjusted earnings beat Wall Street estimates in the quarter, but Weight Watchers lowered the top end of its earnings outlook range for 2008.

The weight loss services company said net income in its second quarter was $46.6 million, or 59 cents per share, down from $58.0 million, or 73 cents per share, a year earlier.

An adverse ruling over the imposition of VAT tax on meetings fees reduced earnings by 28 cents per share, the company said.

Excluding the impact of VAT, earnings were 87 cents, the company said, above the 82 cents per share expected, on average, by three analysts polled by Reuters Estimates.

Sales rose 3.6 percent to $400 million, the company said.

Weight Watchers narrowed its full year earnings outlook to a range of $2.85 to $2.96 from an earlier range of $2.85 to $3.00.

2008 earnings estimates from three Wall Street analysts ranged from $2.67 to $2.84, according to Reuters Estimates.

Shares of Weight Watchers closed at $35.76 on the New York Stock Exchange. (Reporting by Alexandria Sage, editing by Phil Berlowitz)