Fossil Group Jumps 5% After Q4 Earnings Beat
Fossil Group (NASDAQ: FOSL) is up more than five percent in after hours trading after the company announced its fourth quarter results.
The fashion accessory manufacturer reported a Q4 EPS of $2.68 versus the Street estimate of $2.44.
Earnings per share were up 18 percent from the year-ago period.
Revenue arrived at $1.06 billion versus the Street estimate of $1.02 billion. Sales were up 12 percent year-over-year.
"We're very pleased with our fourth quarter results, which exceeded our expectations and concluded a successful year where we made significant progress on many of our strategic initiative," Kosta Kartsotis, CEO of Fossil Group, said in a company release. "We leveraged our leadership position in lifestyle watches, gaining share in the growing global watch market, with many brands in our portfolio posting solid increases. The FOSSIL(R) brand delivered sales growth in all regions this year and we expanded the SKAGEN(R) brand globally.
"We extended the reach of our business in key newer markets, like China, where our business grew more than 50% for the year. We continued to develop our global infrastructure, adding and enhancing key operational capabilities and we once again leveraged our strong operating model and cash flows to generate outstanding EPS growth for our shareholders."
Fossil Group may be riding high on earnings, but its first quarter expectations are a bit below Wall Street's estimates.
The company expects to report a Q1 EPS between $1.10 and $1.18, while the Street was anticipating an EPS closer to $1.30.
Fossil Group also expects to report a FY2014 EPS between $6.90 and $7.30. Wall Street's estimate of $7.22 is toward the higher end of that spectrum.
Year-to-date, shares of Fossil have been trading down slightly from where they began. As of market close on Monday, February 10, the stock was down nearly three percent YTD.
Disclosure: At the time of this writing, Louis Bedigian had no position in the equities mentioned in this report.
© 2014 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.