Fossil Group rises on strong 2014 outlook
NEW YORK (AP) — Shares of Fossil Group rose in aftermarket trading Tuesday after the accessories seller forecast strong profit and sales in 2014.
The retailer of Fossil and Skagen watches, jewelry, handbags, leather goods and other items said it expects to earn between $6.90 and $7.30 per share this year. It said revenue should grow between 8 and 10 percent, to a total of $3.52 billion to $3.59 billion.
FactSet says analysts expect net income of $7.21 per share and $3.53 billion in revenue.
Fossil Group Inc. shares rose $1.96 to $116.96 on Tuesday, and picked up $3.04, or 2.6 percent, to $120 in aftermarket trading following the release of the earnings report.
Fossil said its fourth-quarter net income fell 2 percent, to $148.5 million from $151.1 million. On a per-share basis its income grew to $2.68 from $2.51 because the company has fewer shares on the market. Revenue grew 12 percent, to $1.06 billion from $947.7 million.
On average analysts expected net income of $2.41 per share and $1.02 billion in revenue.
The Richardson, Texas, company said revenue from watch sales climbed 14 percent to $833.8 million and jewelry revenue grew 27 percent to $82.1 million. Leather goods sales fell 5 percent to $127.1 million and sales of other items also edged lower.
Fossil Group said its net income rose 10 percent to $378.2 million, or $6.56 per share, over the 12-month period that ended Dec. 28. Revenue grew 14 percent to $3.26 billion.