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Net Sales Increase 15% to a Record $681 Million EPS Increases 30% to a Record $1.21, Including Gain on Spanish Joint Venture Provides Second Quarter Guidance and Updates Full Year Guidance
RICHARDSON, Texas, May 7, 2013 (GLOBE NEWSWIRE) -- Fossil, Inc. (Nasdaq:FOSL) (the "Company") today reported its financial results for the first quarter ended March 30, 2013.
First Quarter Operating Highlights
Net sales grew in all segments, compared to the prior fiscal year first quarter:
North America wholesale sales increased 13%
Europe wholesale sales increased 14%
Asia wholesale sales increased 13%
Direct to consumer sales increased 22% with global retail comps increasing 4.3%, the 20 th consecutive quarter of positive comps
Operating income increased 14%
The Company reported record net earnings of $72.2 million for the first quarter of fiscal 2013, compared to $58.1 million for the first quarter of fiscal 2012. Diluted earnings per share grew 30.1% to a record $1.21 compared to $0.93 for the prior fiscal year's first quarter. The current quarter results included a $6.4 million non-cash, non-operating gain, which benefitted earnings per share by $0.11, related to the Company's future acquisition of the remaining 50% of the Company's Spanish joint venture. The Company's current quarter results were also negatively affected by an anticipated $10 million (or $0.05 per share) shift of shipments, due to the current year's misalignment between the Company's and many of its customers' fiscal calendars. Separately, the current quarter results also benefitted from approximately $15 million (or $0.07 per share) in March 2013 shipments, which the Company had anticipated delivering in April 2013.
Kosta Kartsotis, Chief Executive Officer, stated, "We are off to an excellent start in fiscal 2013, with record first quarter results that exceeded both our top and bottom line expectations. We increased FOSSIL brand sales, driven by double-digit watch growth and the resurgence of our retail jewelry business. Our multi-brand watch portfolio sustained its positive momentum with strong performances across several brands and we continued to develop SKAGEN with the introduction of a new jewelry line in the quarter. International expansion continued to fuel our growth, with strong performances in both Asia and Europe. In the Americas, we posted solid gains and also completed the acquisition of one of our Latin America distributors, providing an important foothold in that very promising region."