Fossil Group Sinks On Weak Outlook, Flat Q2 Comps

shares trended down in the extended session after the company offered a disappointing outlook and said second-quarter same-store sales were flat. The fashion accessories maker's second-quarter earnings fell 22 percent but beat Wall Street expectations by a small margin, while sales grew 10 percent and were also slightly ahead of the consensus. Same stores sales growth in Asia Pacific and Europe was offset by a decrease in North America, which was largely driven by a decline in mall traffic. Fossil said it will book a charge to earnings of $0.10 a share in either the 2014 fourth quarter or the following period to improve the profits at some of its North American retail stores. The company forecast third-quarter earnings of $1.77 to $1.84 a share, while Wall Street expected $1.84 a share. For the full year, Fossil sees earnings of $6.95 to $7.35, including the charge of $0.10 a share. Analysts expect adjusted earnings of $7.13 a share. For the recent second quarter, Fossil posted earnings of $52.5 million or $0.98 a share, versus year-earlier profit of $67.7 million or $1.15 a share. Revenue grew to $773.8 million, from $706.2 million. Wall Street expected $0.96 a share on revenue of $770.7 million. At the time of this writing in after-hours trading, Fossil changed hands at $98.55 a share, down 3.62 percent.