Aug 6, 2013
Fossil profit beats estimates as demand picks up in Asia and Europe
Aug 6, 2013
Fashion accessory maker and retailer Fossil reported a better-than-expected quarterly profit as it sold more watches and jewelry in Europe and Asia.
Fossil raised its full-year profit outlook to between $6.15 and $6.35 per share from between $6.00 and $6.26 per share. The stock rose 9 percent in premarket trade to $116.80.
Analysts on average expect a full-year profit of $6.17 per share, according to Thomson Reuters.
Fossil sells watches ranging from $7 to upwards of $2,000 under brands such as Michael Kors, Armani Exchange, and Marc by Marc Jacobs.
In the second quarter, sales to wholesale customers in Europe rose 16 percent to $170.7 million, helping overall revenue rise by 11.4 percent to $706.2 million. Analysts were looking for second-quarter revenue of $691.2 million.
Europe and Asia wholesale contributed about 38 percent of Fossil's total sales in the quarter.
Second-quarter earnings rose to $67.7 million, or $1.15 per share, from $57.3 million, or 92 cents per share, a year earlier. Analysts expected a profit of $0.93 per share.
Fossil shares closed at $107.42 on Monday on the Nasdaq.
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