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Fossil proves it's not extinct

February 12, 2013: 1:01 PM ET

Fossil shares have steadily kept climbing. Click the chart for more stock info.

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.

Not only is it a good day for Kors and Fossil (FOSL), whose shares rallied 5%, but shares of Coach (COH) and Movado (MOV) are riding the wave.

That gave StockTwits traders plenty to critique.

$FOSL and $KORS??? If the sellers or the unimaginative are now out then these stock can resume their uptrends. jmho Bullish

$FOSL Posts Q4 Profits, Signs Watch Agreement With Tory Burch: $KORS and Burch smoke screens?...

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.

$FOSL call: overall economic conditions in Asia not as strong as they anticipated, customers managing inventories tightly

That's a valid point. But sales still rose nearly 19% last quarter so I wouldn't get too wound up over economic jitters.

Who's afraid of an iWatch? Fossil sales beat forecasts although guidance doesn't look fantastic. $FOSL up 2.4% pre-market. Your move, $AAPL?

$FOSL guiding down.: sees Q1 eps of .93 to.98 on 648.5M rev vs current est of 1.04 on 655.7M

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.

Will Apple's new product bring the watch back as a fashion accessory? Movado, Michael Kors, Fossil seem to be doing well on their own. $AAPL

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.

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Catherine Tymkiw
Catherine Tymkiw
News Editor CNNMoney

Catherine Tymkiw is a news editor at CNNMoney where she helps oversee breaking news coverage and futures planning. Previously, she was the investing editor. Prior to joining CNNMoney, she was the online editor at Crain's New York Business and has nearly two decades of reporting and editing experience. She tweets @ctymkiwcnn

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