Fossil Inc. posted double-digit percent gains in both fourth-quarter profits and sales, and said separately that it has signed a global licensing agreement with Tory Burch.
This story first appeared in the February 13, 2013 issue of WWD. Subscribe Today.
The watch firm said income for the three months ended Dec. 29 rose 28.2 percent to $151.1 million, or $2.51 a diluted share, from $117.9 million, or $1.87, last year. Sales rose 14.1 percent to $947.7 million from $830.8 million. The firm said global retail comparable-store sales rose 2.4 percent, representing the 19th consecutive quarter of positive comps.
For the year, income rose 16.5 percent to $343.4 million, or $5.59 a diluted share, from $294.7 million, or $4.61, in 2011. Sales rose 11.3 percent to $2.86 billion from $2.57 billion.
Kosta Kartsotis, chief executive officer, said, “During the quarter, we grew sales in each of our major geographies and improved the overall profitability of our business, validating the strength of our business model and driven by our compelling portfolio of brands.”
The ceo also said that Asia has delivered its highest growth rate and that it has successfully integrated the Skagen brand, which the company acquired in April 2012. For the first quarter of fiscal 2013, Fossil provided diluted earnings per share guidance of 93 cents to 98 cents. For the full year, it expects diluted EPS at $5.85 to $6.15.
Shares of Fossil rose 3 percent to close at $110.65 in over-the-counter trading.
The company separately said that it signed a global licensing deal with the Tory Burch Co. to design, develop and distribute Burch’s first collection of watches. The timepieces are slated for release in late 2014.