Aug 7, 2012
Fossil posts higher quarterly profit
Aug 7, 2012
Fashion accessories maker Fossil Inc forecast a full-year adjusted profit above analyst estimates after posting better-than-expected quarterly results on improved performance of its wholesale business.
Shares of the company were set to open about 20 percent higher after closing at $69.79 on Monday on the Nasdaq.
The company, which sells its namesake brand as well as Armani Exchange, Marc by Marc Jacobs and Michael Kors Holdings Ltd products, expects full-year earnings of $5.20 to $5.25 per share. It expects adjusted earnings of $5.29 to $5.34 per share.
Analysts on average were expecting it to earn $5.28 per share, according to Thomson Reuters I/B/E/S.
Second-quarter earnings rose to $57.3 million, or 92 cents per share, from $51.4 million, or 80 cents per share, a year earlier. On an adjusted basis they earned 93 cents.
Revenue rose 14.3 percent to $636.1 million.
Analysts on average had expected Fossil to earn 78 cents per share, on revenue of $634.9 million.
Revenue at Fossil's wholesale segment, which constitutes more than half of the company's revenue, rose about 14 percent to $481.9 million. Wholesale revenue in North America rose 17 percent to $249.8 million on improved sales of watches and its Skagen branded products.
Fossil bought privately held Danish watch maker Skagen Designs Ltd in January to expand in Europe.
Revenues from the company's Direct to Consumer segment, which includes over 400 company-owned retail stores, catalogs and e-commerce activities, rose 15 percent to $154.2 million.
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