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Shares of Fossil (FOSL) Plummet 16% on Q1 Earnings, Revenue Miss
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Fossil Group Inc. (FOSL - Free Report) just released its first quarter fiscal 2017 financial results, posting earnings of a loss of 35 cents per share and revenues of $581.8 million. Currently, FOSL is a #3 (Hold), and is down 16.25% to $15.20 per share in trading shortly after its earnings report was released.
Fossil:
Missed earnings estimates. The company reported earnings of a loss of 35 cents per share, lagging behind the Zacks Consensus Estimate of a loss of 21 cents per share and decreasing 275% year-over-year. This number excludes 65 cents from non-recurring items.
Missed revenue estimates. The company saw revenues of $581.8 million, also missing our consensus estimate of $596 million and declining 12% year-over-year, mostly due to a stronger U.S. dollar.
Global retail comps, including e-commerce sales, for Q1 decreased 11% compared to the first quarter of fiscal 2016, with declines in all product categories and all regions.
Net sales in the Americas decreased $58.3 million or 17%. Across product categories, watches declined, though Fossil saw growth in connected watches offset by a decline in traditional watches. Leathers and jewelry also declined compared to last fiscal year. A sales decline in the U.S. drove the decrease in the region.
Looking ahead to Q2, Fossil expects net sales to decline in the range of 11.5% to 8.0%, operating margin to decrease in a range of (5.5)% to (3.5)%, and diluted earnings (loss) per share to fall in the range of ($1.00) to ($0.83), including 15 cents of restricting charges.
“Our results for the first quarter, while largely in line with our expectations, continue to reflect a challenging retail environment and a watch category undergoing significant change. The strategies we are pursuing in the midst of these headwinds enable us to better compete in the environment and capitalize on the growing importance of technology to the watch category,” said Kosta Kartsotis, CEO.
Here’s a graph that looks at Fossil’s price, consensus, and EPS surprise:
Fossil Group, Inc. Price, Consensus and EPS Surprise
Fossil is involved in designing, marketing and distributing consumer fashion accessories. The Company's product portfolio includes men's and women's watches, handbags, belts, small leather goods, jewelery, sunglasses, hats, gloves and scarves, jeans, outerwear, fashion tops and bottoms, tee shirts as well as optical frames. Its brands include MICHELE, Zodiac, Relic, Emporio Armani, DKNY, Armani Exchange, Michael Kors, Diesel, Burberry, Marc by Marc Jacobs, Adidas, Skagen Denmark, and Karl Lagerfeld. Fossil Group Inc., formerly known as Fossil, Inc. is based in Richardson, Texas.
Zacks' 2017 IPO Watch List
Before looking into the stocks mentioned above, you may want to get a head start on potential tech IPOs that are popping up on Zacks' radar. Could you imagine being in the first wave of investors to jump on a company with almost unlimited growth potential? This Special Report gives you the current scoop on 5 that may go public at any time.
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Shares of Fossil (FOSL) Plummet 16% on Q1 Earnings, Revenue Miss
Fossil Group Inc. (FOSL - Free Report) just released its first quarter fiscal 2017 financial results, posting earnings of a loss of 35 cents per share and revenues of $581.8 million. Currently, FOSL is a #3 (Hold), and is down 16.25% to $15.20 per share in trading shortly after its earnings report was released.
Fossil:
Missed earnings estimates. The company reported earnings of a loss of 35 cents per share, lagging behind the Zacks Consensus Estimate of a loss of 21 cents per share and decreasing 275% year-over-year. This number excludes 65 cents from non-recurring items.
Missed revenue estimates. The company saw revenues of $581.8 million, also missing our consensus estimate of $596 million and declining 12% year-over-year, mostly due to a stronger U.S. dollar.
Global retail comps, including e-commerce sales, for Q1 decreased 11% compared to the first quarter of fiscal 2016, with declines in all product categories and all regions.
Net sales in the Americas decreased $58.3 million or 17%. Across product categories, watches declined, though Fossil saw growth in connected watches offset by a decline in traditional watches. Leathers and jewelry also declined compared to last fiscal year. A sales decline in the U.S. drove the decrease in the region.
Looking ahead to Q2, Fossil expects net sales to decline in the range of 11.5% to 8.0%, operating margin to decrease in a range of (5.5)% to (3.5)%, and diluted earnings (loss) per share to fall in the range of ($1.00) to ($0.83), including 15 cents of restricting charges.
“Our results for the first quarter, while largely in line with our expectations, continue to reflect a challenging retail environment and a watch category undergoing significant change. The strategies we are pursuing in the midst of these headwinds enable us to better compete in the environment and capitalize on the growing importance of technology to the watch category,” said Kosta Kartsotis, CEO.
Here’s a graph that looks at Fossil’s price, consensus, and EPS surprise:
Fossil Group, Inc. Price, Consensus and EPS Surprise
Fossil Group, Inc. Price, Consensus and EPS Surprise | Fossil Group, Inc. Quote
Fossil is involved in designing, marketing and distributing consumer fashion accessories. The Company's product portfolio includes men's and women's watches, handbags, belts, small leather goods, jewelery, sunglasses, hats, gloves and scarves, jeans, outerwear, fashion tops and bottoms, tee shirts as well as optical frames. Its brands include MICHELE, Zodiac, Relic, Emporio Armani, DKNY, Armani Exchange, Michael Kors, Diesel, Burberry, Marc by Marc Jacobs, Adidas, Skagen Denmark, and Karl Lagerfeld. Fossil Group Inc., formerly known as Fossil, Inc. is based in Richardson, Texas.
Zacks' 2017 IPO Watch List
Before looking into the stocks mentioned above, you may want to get a head start on potential tech IPOs that are popping up on Zacks' radar. Could you imagine being in the first wave of investors to jump on a company with almost unlimited growth potential? This Special Report gives you the current scoop on 5 that may go public at any time.
One has driven from 0 to a $68 billion valuation in 8 years. Four others are a little less obvious but already show jaw-dropping growth. Download this IPO Watch List today for free >>