Proactive Investors - Run By Investors For Investors

Fossil shares tumble after-hours as sales slowdown hits watchmaker's earnings

CEO Kosta Kartsotis says selling watches and pruning costs will be the focus this year
Fossil watch
Fossil’s revenue came in at $787 million, missing the consensus estimate of $806.67 million

Shares of Fossil Group Inc (NASDAQ:FOSL) slumped in after-hours trade Wednesday after the maker of watches, jewelry and handbags missed Wall Street’s estimates for both profit and revenue in the fiscal fourth quarter, due to a slowdown in sales in the Americas and Europe.

In the three months ended December 29, the Richardson, Texas-based company posted net income of $47.6 million, or $0.94 per share, compared with a net loss of $79.9 million, or $1.65 per share. Analysts had called for Fossil to earn $1.09 per share.

Fossil’s revenue came in at $787 million, which missed the consensus estimate of $806.67 million.

In response, Fossil shares shed nearly 17% after the closing bell to hit $13.16.

Sales in the Americas dropped to $377 million, compared with $441 million a year earlier, and revenue was down in Europe, which brought in $272 million in the quarter, down from $336 million.

In a statement, CEO Kosta Kartsotis said selling watches and pruning costs would be the focus this year.

“As we begin 2019, our priorities continue to focus on capitalizing on the opportunity in connected, stabilizing traditional watch sales, and increasing efficiency across our company,” Kartsotis said.


View full FOSL profile View Profile

Fossil Timeline

Related Articles

Company is looking for more acquisitions after integration of Metro Rod
medical imaging graphic
Here we take a closer look at the imaging and diagnostics firm IQ-AI Limited (LON:IQAI)
"The group's performance over the past three years demonstrates the continuing success of our strategy to access more customers and markets," said chief executive John Nichols.
Copyright ©, 2019. All Rights Reserved - Proactive Investors North America Inc., Proactive Investors LLC

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use