Better watch sales propelled Fossil Inc. to stronger-than-expected second-quarter gains — and the company sees an opening in the Asian market, where luxe brands are boosting their prices.
Net income attributable to Fossil rose 11.5 percent to $57.3 million, or 92 cents a diluted share, from $51.4 million, or 80 cents, a year earlier. Earnings per share came in 14 cents better than the 78 cents analysts projected, pushing the stock up 31.5 percent to $91.77, its biggest jump in more than 19 years as a public company.
Sales for the three months ended June 30 increased 14.3 percent to $636.1 million from $556.7 million. The April acquisition of Skagen Designs added $25.2 million to the second-quarter sales line.
Worldwide sales of watches increased 23.3 percent in constant dollars with contributions from most of the firm’s major brands.
“At just less than $3 billion in sales projected for 2012 we’ve nearly doubled our top line in just three years time,” said Kosta Kartsotis, chairman and chief executive officer, on a conference call with analysts. “Our aim has been to develop great product, augment our global infrastructure and a faster growth across our multiple channels of distribution.”
The company’s biggest opportunity for growth is in Asia.
“Over the last several years, there’s been a large white space developing in Asia for watches and accessories as luxury brands continue to elevate prices due to the strong demand for these categories,” Kartsotis said. “Specifically for watches, as the prices and demand have risen for Swiss watches, [it] has created a large opportunity for our products in the region.”
For the full year, Fossil said its adjusted EPS would range from $5.29 to $5.34, ahead of the $5.28 Wall Street had penciled in.
Even so, Kartsotis acknowledged that the company was, in effect, reducing its guidance for the second half. “Most of this is due to the U.S. dollar being much stronger,” the ceo said. “In addition to that, there is a lot of uncertainty and lack of visibility in the global marketplace.”
My character, Dinah Madani, is just the coolest, [most] badass woman imaginable," says @amberroserevah. The actress stars in @marvel's newest series on @netflix, @thepunisher. To prepare for her role, Revah sat down with Homeland agents to get a real sense of with Dinah's day-to-day life is really like. Read our full interview on WWD.com. #wwdeye (📷: @jilliansollazzo)
A scene from the 91st annual @macys Thanksgiving Day Parade. The parade, which boasts 50 million TV viewers and 3.5 million on-site spectators, is considered one of the largest and most watched parades in the world. (📷: Jason Szenes/EPA-REX)
The circus came to @bloomingdales 59th Street on Tuesday night and lit up Lexington Avenue with acrobatic dancers, death-defying knife throwing, sword swallowing and aerial acts with no net. The 45 minutes of theatrics built up to unveiling the holiday windows depicting @swarovski crystal-encrusted circus pieces and scenes from “The Greatest Showman” – songs from the soundtrack included. See the rest of the photos on WWD.com #wwdfashion (📷: Joshua Scott)
The psychedelic fashion that pervaded the ’60s is back with an exhibit at the @museumofcityny. “Mode New York: Fashion Takes a Trip” chronicles the changing styles from 1960 through 1973 and features designers such as @ysl, @oscardelarenta and more. The exhibition, which is on display through April 1, is organized into four periods: First Lady Fasion, Youthquake, New Bohemia and New Nonchalance. Pictured here is model Pat Bardonella during the Garvey Day Parade in 1968. (📷: @kwamebphoto) #wwdeye #wwdfashion
“People should be a lot more honest in expressing both the dark and light of themselves. We need to give each other the space to do that because it’s the only way we can grow and evolve,” says @noelwells of her new film “Mr. Roosevelt,” which is largely based on her own struggles. Unexpectedly leaving @nbcsnl in 2014 after just one season, Wells felt set back in her self-esteem and career trajectory. She quickly refocused her energy to more personal projects, which led to the completion of “Mr. Roosevelt.” Read the rest of WWD’s interview with the “Master of None” actress on WWD.com #wwdeye (📷: @jilliansollazzo)
@barbrastreisand is giving fans a chance to see her perform up close in a new concert series, which makes its debut on @Netflix today. From behind-the-scenes takes to her concert performance in Miami last December, the two-hour streaming special captures Streisand in her element. Pictured here is the singer/actress photographed for WWD in 1963. (📷: Palmieri Tony) #wwdeye #wwdarchive
@chanel and @pharrell dropped what’s being dubbed as the world’s most exclusive sneakers yesterday. The Adidas Originals NMD Hu, which Williams designed in collaboration with Chanel and @adidasoriginals, has a waiting list of over 120K people who pre-registered online at chanelatcolette.fr –– and only 500 pairs are on sale. The singer predicted the resale value of the shoes could reach $40K. Read the full interview on WWD.com. Link in bio. #wwdfashion (📷: Dominique Maître)
@imanshumpert is diving deeper into his creative endeavors and relaunching his clothing line, Post 90s, and is helping to raise money for the hurricane victims in St. Maarten with a jersey he’s designed with his brother. The Cleveland Cavaliers player talked to WWD about kneeling during the national anthem, working with fashion brands and how he wants to be more than an @nba player. Read the interview on WWD.com #wwdfashion (📷: George Chinese)