Fossil, Inc. Reports Record Fourth Quarter And Fiscal Year Net Sales And Earnings

Fourth Quarter Net Sales Rise 32.8% Fourth Quarter Diluted EPS Increases 41.7% to Record Level of $1.46 Fourth Quarter Global Retail Comps Increase 20.3% Fiscal Year Net Sales Surpass $2 Billion Fiscal Year 2010 Diluted EPS Climbs 82.1% to a Record $3.77

RICHARDSON, Texas, Feb. 15, 2011 (GLOBE NEWSWIRE) -- Fossil, Inc. (Nasdaq:FOSL) (the "Company") today reported net sales and earnings for the thirteen-week ("Fourth Quarter") and fifty-two week ("Fiscal Year") periods ended January 1, 2011.

Fourth Quarter Results (2010 vs 2009):

• Net sales increased 32.8% (34.8% in constant dollars) to $701.1 million compared to $527.8 million;
• Gross profit increased 34.5% to $400.1 million, or 57.1% of net sales, compared to $297.6 million, or 56.4% of net sales;
• Operating income increased 38.5% to $149.5 million, or 21.3% of net sales, compared to $108.0 million, or 20.5% of net sales;
• Effective income tax rate increased to 36.0% compared to 34.5%;
• Net income increased 38.1% to $96.7 million compared to $70.0 million; and
• Diluted earnings per share increased 41.7% to $1.46 on 66.3 million shares compared to $1.03 per diluted share on 67.7 million shares.

Fiscal Year Results (2010 vs 2009):

• Net sales increased 31.2% (31.9% in constant dollars) to $2.03 billion compared to $1.55 billion;
• Gross profit increased 36.7% to $1.16 billion, or 56.9% of net sales, compared to $0.84 billion, or 54.6% of net sales;
• Operating income increased 77.9% to $376.4 million, or 18.5% of net sales, compared to $211.6 million, or 13.7% of net sales;
• Effective income tax rate decreased to 31.5% compared to 34.9%;
• Net income increased 83.4% to $255.2 million compared to $139.2 million; and
• Diluted earnings per share increased 82.1% to $3.77 on 67.7 million shares compared to $2.07 per diluted share on 67.2 million shares.

"The Fourth Quarter represented a strong finish to an outstanding year," commented Mike Kovar, Executive Vice President and Chief Financial Officer of Fossil, Inc. "Record sales and earnings and broad based growth across all geographies underscores the significant strength of our business model and our ongoing ability to lead the market with innovative materials and designs. As equally exciting is the continued growth of our core brand evidenced by sales increases across all FOSSIL branded products of 24.4%, inclusive of a 20.3% increase in worldwide comparable store sales and a 56.5% increase in our global e-commerce sales."