Fossil Group Posts Disappointing Results, Stock Plummets In After-Hours

Shares of Fossil Group Inc FOSL were trading down more than 28 percent on Tuesday’s after-hours session, following the announcement of the company’s fiscal first quarter financial results. After the bell rang, the consumer fashion company reported EPS of $0.12 on revenue of $659.8 million, missing estimates by $0.03 and $6.8 million, respectively.

In addition, it should be noted that revenue fell 9 percent year-over-year – and 7 percent on a constant currency basis. The watches segment saw sales decline by 8 percent, and the jewelry category, by 11 percent. And, even though comps rose in Europe, the surge was not large enough to counter the feebleness in the Americas and Asia.

Guidance was also discouraging. For the second quarter, management said it expects earnings of $0.00 to $0.15 per share, well below the Street’s consensus of $0.58 per share. For the full year, the company anticipates earnings in the $1.80 to $2.80 per share range.

Finally, one figure was particularly surprising for investors. Operating margins plummeted from 7.7 percent in the first quarter of last year, to 2.2 percent this year.

Disclosure: Javier Hasse holds no positions in any of the securities mentioned above.