Fossil stock surges 30%August 7, 2012: 1:46 PM ET
Fossil shares soared more than 30% Tuesday, leading gains on the S&P 500 (SPX) and Nasdaq (COMP), after the company trounced earnings expectations and impressed investors with its profit forecast for the year.
Fossil (FOSL) reported a second-quarter profit of $57.3 million, or 92 cents per share, up almost 12% from a year ago. And revenue jumped 13% during the quarter.
The biggest sales increase came from Asia, where sales soared more than 27%. The company's acquisition of Skagen watches earlier this year also helped global watch sales spike more than 17% during the quarter.
StockTwits users sound off on the lowered expectations and challenges facing the brand.
That's possible. Fossil actually revised its forecast lower from its original projection, but investors are heartened by the fact that it's not as bad as Wall Street analysts were predicting.
Fossil's newest earnings-per-share target for the year stands between $5.29 and $5.34, down from $5.30 to $5.40. But analysts had been looking for $5.28 a share, so at least Fossil thinks it will do better than that.
As a global brand, with significant business in Europe and Asia, it only makes sense for Fossil to be wary.
Shares of Michael Kors (KORS) rose 3% Tuesday.
Back in May, Fossil's shares tumbled 37% the day it reported disappointing first-quarter earnings and sales, slashed its outlook for the year and blamed Europe for the general weakness. Despite today's rally, Fossil's stock had yet to fully recover from that slide.