DALLAS — Fossil Inc. reported first-quarter earnings grew 95 percent to $2.1 million, or 16 cents a share, from $1.1 million, or 10 cents, a year ago.
Year-ago results have been adjusted to make them comparable following an initial public offering in April 1993.
In the quarter ended March 31, sales rose 62.5 percent to $25.4 million, from $15.7 million. Randy Kercho, vice president and chief financial officer, attributed the strong results to greater sales of higher margin products. Aided by elimination of commissions charged by Fossil’s Hong Kong trading company, now owned by Fossil, margins improved to 42.5 percent of sales from 37.4 percent last year. Fossil also said it will begin selling its watches in Japan next month under a five-year distribution agreement with Seiko Corp. “We think over the next five-to-seven-year period it could grow to as many as 1 million units a year, approximately as much as $20 million annually,” said Kercho.