UPDATE 2-Weight Watchers Q3 tops market, sees weak Q4 profit

* Q3 EPS $0.68 vs est $0.64 * Sales $324.5 mln vs est $318.2 mln * Narrows FY09 EPS view to $2.58-$2.63 from $2.52-$2.70 (Recasts; Adds conference call details)

Nov 10 (Reuters) - Weight Watchers International Inc (WTW.N) reported better-than-expected quarterly results, benefiting from improved customer retention and enrollments, but forecast weak fourth-quarter earnings weighed down by a free promotion.

Weight Watchers expects the buy-one-get-one-free promotion to hurt fourth-quarter earnings by $3.5 million.

"We will recoup this in 2010 when we will have the benefit of all of the incremental volume without having to take any additional revenue dilution associated with the discount," Chief Executive David Kirchhoff said on a conference call.

The company, which helps customers lose weight, expects fourth-quarter adjusted earnings of 48 cents to 53 cents a share.

Analysts on average expected earnings of 57 cents a share, excluding items, according to Thomson Reuters I/B/E/S.

The promotional activity, which hurt the third quarter by $1.5 million, will have a 4 cents-per-share negative impact for the year, Kirchhoff said.

For the third quarter ended Oct. 3, net income was $52.6 million, or 68 cents a share, versus $52.7 million, or 67 cents a share, a year ago.

The results beat the 64 cents a share profit expected by analysts on average.

Sales fell 8 percent to $324.5 million, but surpassed analysts' average estimates of $318.2 million.

Selling, general and administrative expenses fell 12 percent to $41 million.

Shares of the New York City-based company closed at $27.49 Tuesday on the New York Stock Exchange. (Reporting by Viraj Nair in Bangalore; Editing by Unnikrishnan Nair) ((viraj.nair@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 4135 5800; Reuters Messaging: viraj.nair.reuters.com@reuters.net))