FOSSIL STOCK SURGES AFTER BEATING ANALYSTS’ EXPECTATIONS
Fossil, the Texas-based watch and accessories brand, has seen its stock price rise over 25 percent on Wednesday after the company reported late Tuesday that the company’s fourth-quarter earnings had exceeded expectations. The stock, which had closed at 34.46 was trading as high as 45.02 early on Wednesday; at 1:30 p.m, it was trading at 43.88.
The company reported adjusted earnings per share (EPS) of $1.46, and net sales of $992.5 million, both well above what had been projected by analysts. That said, net sales did decline 7 percent from the prior year, due mostly to currency fluctuations. Fossil also updated its 2016 guidance, with an earnings range of $2.80–$3.60 per share, down from the $4.51 per share in fiscal 2015.
The company has invested heavily in the smartwatch business,and recently launched its newest smartwatch, the Q54 Pilot, at the 2016 International Consumer Electronics Show (CES) in Las Vega. It will be available in stores in spring 2016, and will retail for $175-215.
