×
78 032
Fashion Jobs
ATHLETA
Assistant Manager - The District
Permanent · Henderson
ATHLETA
General Manager - Old Orchard
Permanent · Skokie
SAKS OFF 5TH
Supply Chain Analyst
Permanent · WILKES-BARRE
SAKS
sr Cyber Security Operation Center (Csoc) Analyst
Permanent · NEW YORK
SAKS
Overnight Shift Operations Manager
Permanent · LA VERGNE
MACY'S
Asset Protection Security Guard, Kings Plaza - Full Time
Permanent · New York
MACY'S
sr. Manager, Price Strategy
Permanent · New York
MACY'S
Asset Protection Security Guard, Herald Square - Full Time
Permanent · New York
MACY'S
Asset Protection Detective, Bellingham Bellis Fair - Full Time
Permanent · Bellingham
MACY'S
Asset Protection Detective, Woodbridge Center - Full Time
Permanent · Woodbridge Township
MACY'S
Asset Protection Detective, Staten Island - Full Time
Permanent · New York
MACY'S
Asset Protection Detective, Security Square - Flex
Permanent · Baltimore
MACY'S
Asset Protection Detective, Streets of South Point - Full Time
Permanent · Durham
MACY'S
Asset Protection Detective, Queens Center - Full Time
Permanent · New York
MACY'S
Asset Protection Security Guard, Topanga - Standard Part Time
Permanent · Los Angeles
MACY'S
Asset Protection Detective, State Street - Full Time
Permanent · Chicago
MACY'S
Asset Protection Detective, University Town Center - Full Time
Permanent · Sarasota
MACY'S
Asset Protection Detective, Walt Whitman - Full Time
Permanent · Huntington Station
MACY'S
Manager, Merchandise Execution
Permanent · Las Vegas
MACY'S
Manager, Asset Protection
Permanent · Columbia
MACY'S
Asset Protection Detective, Aventura - Full Time
Permanent · Aventura
ABERCROMBIE AND FITCH CO.
Asset Protection Agent
Permanent · San Francisco
By
Reuters
Published
May 8, 2012
Reading time
2 minutes
Share
Download
Download the article
Print
Click here to print
Text size
aA+ aA-

Fossil says Europe to weigh on results, shares plunge

By
Reuters
Published
May 8, 2012

Fossil Inc (FOSL.O) missed sales estimates for the second straight quarter and warned that a weak European market will continue to weigh on its results through the year, prompting investors to wipe off more than $3 billion of the fashion accessories maker's market value.


Fossil watches

Shares of the company, which handily beat estimates for most of the last two years, plunged 40 percent on Tuesday to $75.56 on the Nasdaq. The disappointing forecast erased most of the gains the stock made this year.

Fossil's warning about Europe follows a spate of similar forecasts from companies like McDonald's Corp (MCD.N), Kraft Foods Inc (KFT.N) and Estée Lauder Cos Inc (EL.N).

"(Fossil) is a company that was beating sales guidance by 5 to 7 percentage points for the past two and a half years," FBR Capital Markets analyst Anna Andreeva said.

The company, which sells its namesake brand as well as Michael Kors (KORS.N), Armani Exchange and Marc by Marc Jacobs, reported first-quarter revenue of $589.5 million, missing analysts' expectations by about 5 percent.

Fossil cut its sales target for Europe, which accounts for a quarter of its total revenue.

"As we anticipate economic softness to continue in Europe we are reducing our previous (sales) growth expectations of mid teens for the year (in Europe) down to low-to-middle single digits," Fossil Chief Executive Kosta Kartsotis said on a call with analysts.

In the first quarter, Fossil's sales in Europe grew marginally, weighed down by softness in Germany and a weakening environment in Italy and Spain.

Wholesale revenue in Europe was virtually flat at $152.9 million while it rose 8.8 percent to $225 million in North America.

The company, which sells jewelry, leather goods, belts, sunglasses and apparel besides watches, cut its full-year earnings estimate to between $5.30 and $5.40 per share from $5.40 to $5.50.

Analysts on average were estimating earnings of $5.56 per share, according to Thomson Reuters I/B/E/S.

The company also expects full-year gross margins to come in below last year's 56.1 percent.

Some of the hit to margins would come from integration costs related to its $236.8 million acquisition of Danish watchmaker Skagen Designs Ltd.

First-quarter earnings rose to $58.1 million, or 93 cents per share, from $55.2 million, or 86 cents per share, last year. This came in 1 cent above analysts' expectations.

(Reporting by Arpita Mukherjee in Bangalore; Editing by Sreejiraj Eluvangal)

© Thomson Reuters 2022 All rights reserved.