Fossil 3rd-quarter net income rises
November 7, 2011
(AP) - RICHARDSON, Texas - Watch maker Fossil Inc. said Tuesday that its third-quarter net income rose 2 percent, above Wall Street expectations, on strong global sales of watches and leather goods.
Still, the company lowered its guidance due to the stronger U.S. dollar, and its shares.
Apparel and accessories makers face higher raw material costs. Fossil said production cost increases hurt its gross margin during the quarter but were offset by higher sales.
Net income for the three months ended Oct. 1 rose 2.1 percent to $69.6 million, or $1.09 per share, from $68.2 million, or $1 per share. Analysts expected $1.03 per share, according to FactSet.
Revenue rose 22.7 percent to $642.9 million from $523.8 million last year. Analysts expected revenue of $640.3 million.
Wholesale revenue rose the most in Europe and Asia. Retail sales were led by Asia and North America.
Fossil, based in Richardson, Texas, expects net income in the fourth-quarter of $1.75 to $1.78 per share, versus prior guidance of $1.78 to $1.82 per share, based on the strengthening dollar.
The company raised its full-year guidance to $4.50 to $4.53 per share from $4.44 to $4.50 per share.
Shares fell $6.95, or 7.2 percent, to $90.25 in morning trading. The stock is up 28 percent since the beginning of the year.
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