Fossil is proving it's alive and kicking.
The accessories maker, best-known for its name-brand watches, reported earnings per share Tuesday that squeaked past estimates by a penny. And sales rose 14% to a record $948 million -- topping forecasts.
Fossil also issued a rosy outlook. The company expects sales to grow 10% in the current quarter and rise between 10% and 11% for its full fiscal year.
The bulk of that will be driven by, you guessed it, watches. Last year Fossil acquired Skagen, which makes watches and other accessories. And the company has had a long-standing relationship with Michael Kors (KORS), DKNY, Armani and others.
Speaking of Kors. Now might be an opportune time to mention that the company, run by former Project Runway judge Michael Kors, issued yet another stellar earnings report. Kors' shares have more than tripled since it went public in late 2011.
That gave StockTwits traders plenty to critique.
I'm not sure I'd put it quite that way. Tory Burch could be the latest brand to add pizzazz to Fossil's lineup of brands we know and love. Just look at what the addition of Skagen has done for them -- added $43.5 million of net sales in the fourth quarter.
That's a valid point. But sales still rose nearly 19% last quarter so I wouldn't get too wound up over economic jitters.
True true on the guidance front. But I see that more as a sign of being frugal and pragmatic than reason for panic. Personally, I'd rather have a cautious outlook that can always be trumped than a sunny outlook that gets rained on.
The other thing Fossil has going for it is its reach. It doesn't concentrate on one market alone so dips can be managed. Case in point: Shipments in Germany and Italy declined, but that was offset by strong growth from the U.K. and France.
Couldn't have said it better myself ivanhoff. There are rumors of an iWatch but even if does come to fruition, there are plenty of folks out there who like a timepiece that's just that... a timepiece.
Fossil's stock took a beating Tuesday, making it the second-worst performer on the S&P 500 (SPX) and Nasdaq (COMP), after the company reported weak revenue and cut back its sales outlook for the current quarter.
Fossil (FOSL) reported third-quarter sales of $684.2 million, falling short of the $713.1 million analysts had expected. Earnings fared better. Fossil beat earnings-per-share forecasts by 9 cents. But Europe, once again, reared its ugly head MORECatherine Tymkiw - Nov 6, 2012 12:30 PM ET
|Inside the Trump University 'playbooks'|
|Glenn Beck suspended by SiriusXM|
|Hitler's coding machine sold on eBay -- for $14|
|Donald Trump's 'sleaze' attack on reporter hits new level of media animosity|
|UnitedHealth to exit California's Obamacare market|