The Fossil Group Inc. swept past consensus estimates for fourth-quarter results while adopting a conservative stance toward the first quarter.
In the three months ended Dec. 28, the Richardson, Tex.-based watch and accessories firm saw net income decline 1.7 percent to $148.5 million, or $2.68 a diluted share, from $151.1 million, or $2.51, in the year-ago quarter.
Revenues expanded 12.1 percent to $1.06 billion from $947.7 million as gross margin grew to 57.4 percent of sales from 56.9 percent.
On average, analysts expected earnings per share of $2.43 on revenues of $1.02 billion.
The company’s North American wholesale operations grew 12.8 percent to $400.1 million during the quarter while the largest increase in business by region came from Europe, where sales were up 17.6 percent to $273.9 million.
Direct-to-consumer sales grew 8.7 percent to $279.6 million
By product category, watches were up 14.3 percent to $833.8 million, leathers down 3.9 percent to $127.1 million, jewelry up 26.9 percent to $82.1 million and other products down 9.8 percent to $19.4 million.
The company said that the strength in watches came despite “modest growth” for the Fossil brand and a “small decline” at Skagen.
The company projected first-quarter EPS of between $1.10 and $1.18, below the consensus estimate of $1.30 for the period, and full-year EPS of between $6.90 and $7.30 versus a consensus estimate of $7.22.
With the guidance viewed as cautious, investors bought into the stock in after-hours trading, sending it up 3.5 percent to $121 after it rose 1.7 percent to $116.96 in regular trading Tuesday.
Kosta Kartsotis, chief executive officer, said, “As a global leader with unique strategic advantages in a growing category, our goal is to leverage the strength of our powerful portfolio of global brands, increase our geographic reach and expand our owned lifestyle brands in watches and other key categories.”
For the full year, net income was off 1.7 percent to $148.5 million, or $6.56 a diluted share, as revenues expanded 14.1 percent to $3.26 billion.
“Azzedine has been one of the biggest influences in my life. He has always been such a strong, loving, fatherly figure to me. I call him Papa. His designs are indescribably unique, they are pieces of art. He knew how to make the female form look its loveliest. I have so many memories of him; my favorite might be during my first show with him in Paris. He liked me and he wanted to help me get more work. He called all his friends at Kenzo and Comme des Garcons, and asked them to book me. They said, ‘But she can’t walk!’ And he said, ‘but she has such a great ass!' His friendship and support has been the great privilege of my career. I can't imagine life without him. Repose en paix mon Papa.” - @stephanieseymour tells @wwd. #wwdfashion (📷: @steveeichner) #alaia #azzedinealaia
Azzedine Alaïa, flanked by two of his closest friends, models Stephanie Seymour and Naomi Campbell.
He designed Seymour’s dress for her 1995 wedding to Peter Brant, and treated Campbell (who famously called him Papa), like a daughter. For more on the legendary designer, tap the link in bio. #wwdfashion #alaia #azzedinealaia
Azzedine Alaïa's “I-did-it-my-way” ethos stood out starkly at a time when brands are experimenting with consumer-facing fashion shows, coed formats and trans-seasonal collections – anything to perk up lackluster sales of ready-to-wear in an age of Insta-everything. “It’s not creation anymore. This becomes a purely industrial approach,” the late designer told WWD in an interview last year. “But anyway, the rhythm of collections is so stupid. It’s unsustainable. There are too many collections.” Read more about the iconic designer’s life and work on wwd.com, link in bio. #wwdfashion #azzedinealaia (📷: @WWD Archive, 1986) #alaia
Sneaker reselling app @goat’s latest exhibit, "The Greatest: New York," tells the story of New York's sneaker culture. To celebrate the exhibit, an intimate crowd gathered on Thursday night at the pop-up gallery space, located at Platform in Culver City, to hear guest speaker and illustrator @esymai talk about her own rise in streetwear and women in the business. "For me I'm just someone who is creative. I like to create things," said Chang. #wwdfashion
Azzedine Alaïa, one of the most iconic couturiers of the modern era whose body-con designs defined Eighties fashion, has died in Paris. The diminutive Tunisian-born designer, known for his structured knitted dresses with fitted waists and impeccably cut, figure-hugging second skin silhouettes was deeply admired by his peers, and counted supermodel Naomi Campbell - his adoptive daughter - among his inner circle, one of a gang of glamazons including Farida Khelfa, Carla Bruni and Stephanie Seymour who became ambassadors of his style. (📷: Alexandre Guirkinger) #wwdblast