RICHARDSON, Texas – Fossil Inc. reports a net sales increase of 18.2% to $306.5 million in the second quarter of 2007, compared to $259.2 million net sales last year. Gross profit was also up: 18.5% to $150.5 million, the company said in a statement this morning. Net income went up 30.6% to $14.7 million, including $3.3 million of Grant Review expenses. Fossil underwent a voluntary review of its equity granting practices with the SEC. The review was completed in July, and the SEC did not require any sanctions.
“With the equity granting practices review and the SEC’s related informal investigation now behind us, we are excited to once again be up-to-date on our filings and providing our stockholders with more in-depth analysis of our financial results,” said Fossil CFO Mike Kovar. “Our Second Quarter picked up where our first quarter left off, delivering a solid double-digit increase in sales and significant gains in profitability.”
He added: “We expect our watch and jewelry businesses to continue to perform strongly; we are launching two new accessory businesses in the domestic market for the fall season; and our retail stores continue to build momentum. We believe these sales growth drivers, combined with our commitment to manage expenses and inventory, point to a solid year of growth at increased rates of profitability for the Company.”
Fossil designs, markets, and distributes men’s and women’s watches, handbags, and accessories.