logo
Share SHARE
FONT-SIZE Plus   Neg

Fossil Q4 Profit Climbs 28% On Strong Watch Growth - Update

Fashion accessories and watch retailer Fossil, Inc. (FOSL) Tuesday said fourth-quarter profit climbed 28 percent from last year, as sales increased driven by the continued double-digit expansion of the global watch portfolio. The stock is gaining over 4 percent in pre-market activity.

Net income attributable to company increased to $151.1 million or $2.51 per share from $117.9 million or $1.87 per share in the previous year.

Adjusted earnings per share were $2.27 for the quarter. On average, 12 analysts polled by Thomson Reuters expected earnings of $2.26 per share for the quarter. Analysts' estimates typically exclude special items.

Net sales increased to $947.7 million from $830.8 million last year. Analysts expected revenue of $930.43 million for the quarter.

The translation impact of a stronger U.S. dollar decreased net sales by about $5.8 million. The acquisition of SKAGEN brand in April 2012 generated $43.5 million of net sales in the fourth quarter.

Net sales grew in all segments. North America wholesale sales increased 15 percent to $354.7 million, including the expected positive impact of a shift in certain wholesale customer shipments to the fourth quarter from the third quarter.

Asia wholesale sales climbed 19 percent to $102.8 million, backed mostly by the strong performance of the watch category.

Europe wholesale sales rose 4 percent, by increases in the watch category as well as the addition of the SKAGEN brand.

Direct to consumer sales increased 20 percent, mainly due to expansion of the global retail store base coupled with a 2.4 percent increase in comparable store sales.

Product-wise, Watches generated $729.3 million in the quarter, up from last year's $607.1 million. Jewelry sales also increased, but sales of Leathers slid from the year-ago period.

Kosta Kartsotis, CEO, said, "We are pleased to report strong fourth quarter sales and earnings, concluding another record year of growth and significant progress toward our long-term goals. During the quarter, we grew sales in each of our major geographies and improved the overall profitability of our business.''

For the first quarter, the company expects earnings per share in a range of $0.93 to $0.98 and net sales to increase around 10 percent. Analysts expect the company to report first-quarter earnings per share of $1.03.

For fiscal 2013, the company expects earnings per share in a range of $5.85 to $6.15 and net sales to increase between 10 percent and 11 percent. Wall Street looks for fiscal 2013 profit per share of $6.13.

FOSL closed at $107.46 on Monday. The stock is adding 4.4 percent in pre-market activity.

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Editors Pick
Following his twelve-day trip to Asia, President Donald Trump announced Monday the U.S. is putting North Korea back on a list of state sponsors of terrorism. Trump announced the move in comments ahead of a Cabinet meeting and said his administration would also be ramping up sanctions on North Korea. Volkswagen plans to invest about 22.8 billion euros in its core brand from 2018 to 2022, with main focus on e-mobility and modularization. In a statement on Saturday, the German automaker announced that the investments, as part of the brand's Transform 2025+ strategy, will significantly boost the brand's largest product and technology offensive. Health IQ Insurance Services, a startup focused on providing life insurance for health-conscious individuals, said it has secured $34.6 million in Series C funding, led by Andreessen Horowitz. To date, the company has raised a total of $81 million in funding mostly from its existing investors.
comments powered by Disqus
Follow RTT