Tuesday, February 12, 2013

Fossil Jumps 5% On Strong Q4

Shares of Fossil (FOSL) were rising nearly 5% in morning trading, following the accessory maker�s fourth-quarter earnings report.

Before the bell this morning, Fossil reported earnings of $151.1 million, or $2.51 a share, up from $1.87 a share in the year-ago period; adjusted EPS were $2.27, a penny ahead of consensus. Revenue increased 14% to $947.7 million, surpassing the $930.4 million analysts expected.

Metrics were largely positive in the quarter, as same store sales gained 2.4% and gross margin inched ahead to 56.9% from 56.1%.

While Fossil�s forecast for the current first quarter fell below analysts� expectations, its full-year view was closer to consensus: The company estimates it will earn between 93 cents and 98 cents a share on a 10% jump in sales this quarter; the Street was modeling for $1.03 a share on an 11% rise in revenue to $657 million. For 2013, Fossil is looking to earn between $5.85 and $6.15 a share on sales growth of 10%-11%. Analysts have pegged earnings per share at $6.12 on a 10% revenue increase.

Although Fossil has been a volatile stock in the past, the company has been attracting attention for its ongoing expansion in Asia and Europe, as well as its increase in higher-end offerings. Fossil has also moving beyond its roots as a watchseller, with lines of clothing, handbags and jewelry. Barron�s highlighted the shares last month, arguing they could climb to $120 as its international growth and licensing businesses remain strong. Already partnered with fashion favorites like Karl Lagerfeld, Fossil today announced a licensing agreement with Tory Birch.

No comments:

Post a Comment