Fossil Group (FOSL) Tops Q2 EPS by 30c
Fossil Group (NASDAQ: FOSL) reported Q2 EPS of $1.12, $0.30 better than the analyst estimate of $0.82. Revenue for the quarter came in at $740 million versus the consensus estimate of $750.35 million.
Kosta Kartsotis, Chief Executive Officer, commented on the results. "For the second quarter, we delivered constant currency sales growth across all regions and earnings per share growth ahead of our expectations. Sales were strong for both Fossil and Skagen in all regions, with early indications that our demand creation initiatives are working. These initiatives will expand sharply in the second half of the year to further drive Fossil and Skagen sales performance. We drove strong growth in branded jewelry, a category that continues to resonate with customers around the globe and our leather business continued to accelerate. Our licensed watch portfolio business did not meet our expectations for the quarter as several factors and many unique regional challenges impacted near-term demand in the category."
Mr. Kartsotis concluded, "While near term-challenges exist, we remain confident in our long-term strategies. We will continue to drive innovation across our portfolio to grow our business and deliver high returns. We will continue to invest in our owned brands, create a greater consumer connection and enhance our digital capabilities, while driving our category leadership with our world-class portfolio of licensed brands. We are making great progress in our pursuit of connected accessories, with exciting new products launching this Fall. We believe a branded fashion experience will be the catalyst to further accelerate the connected accessory trend and that we are uniquely positioned to leverage our capabilities and technology partnerships to be a leader in this space. We operate a diversified business model, supported by a solid financial position and powerful cash flow generation, which helps us navigate through both good and challenging times. We believe we are set up to win over the long term and we remain excited about our future."
Fossil Group sees FY2015 EPS of $6.20-$7.00, versus the consensus of $5.57.
Fossil Group sees Q3 2015 EPS of $1.45-$1.70, versus the consensus of $1.45.
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