Market Overview

Fossil Plunges 30% Following Disappointing Results, Huge Guidance Miss


Shares of Fossil Group Inc (NASDAQ: FOSL) were trading down more than 30 percent in Tuesday’s after-hours session, following the announcement of the company’s fiscal first quarter results. 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, 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 jewelry by 11 percent. Even though comps rose in Europe, the surge wasn't 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.

Shares traded recently at $27.85, down 30.5 percent in the after-hours session.

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

Posted-In: Earnings News Guidance After-Hours Center Movers


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