The Business of Fashion
Agenda-setting intelligence, analysis and advice for the global fashion community.
Agenda-setting intelligence, analysis and advice for the global fashion community.
NEW YORK, United States — Fossil Group Inc., a maker of watches, handbags and other accessories, tumbled as much as 14 percent in late trading after its holiday sales and annual forecast missed analysts' estimates.
Fourth-quarter sales rose less than 1 percent to $1.06 billion, the company said Tuesday in a statement. Analysts had predicted $1.12 billion on average, according data compiled by Bloomberg. Earnings amounted to $3 a share in the period, missing the $3.07 projection.
A strong U.S. dollar took a toll on sales last quarter, the Richardson, Texas-based company said. It also suffered from sluggish demand for watches and leather goods, though jewelry sales increased. Fossil’s shipments to major department-store accounts in the U.S. lagged as well.
“We are not entirely satisfied with our fourth-quarter performance and begin 2015 intensely focused on taking advantage of the many opportunities available to us to drive future growth,” Chief Executive Officer Kosta Kartsotis said in the statement.
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The shares fell as low as $85 in extended trading after the results were released. Even before the decline, the stock was down 10 percent this year.
In 2015, the company now expects sales to range from a 3 percent decrease to a 1 percent increase. Analysts had projected a gain of about 5 percent. Earnings will be $5.45 to $6.05, compared with an $7.52 estimate.
By: Nick Turner and Lindsey Rupp; editor: John Lear.
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