This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Fossil Group Reports Record Second Quarter 2013 Results

Stocks in this article: FOSL

Net Sales Increase 11% to a Record $706 Million EPS Increases 25% to a Record $1.15 Provides Third Quarter Guidance and Increases Full Year Guidance

RICHARDSON, Texas, Aug. 6, 2013 (GLOBE NEWSWIRE) -- Fossil Group, Inc. (Nasdaq:FOSL) (the "Company") today reported its financial results for the second quarter and six month period ended June 29, 2013. 

Second Quarter Operating Highlights

  • Net sales grew in all segments, compared to the prior year second quarter:
  • North America wholesale net sales increased 4%
  • Europe wholesale net sales increased 16%
  • Asia Pacific wholesale net sales increased 14%
  • Direct to consumer net sales increased 16% with flat global retail comps
  • Operating income increased 21%

The Company reported record net earnings of $67.7 million for the second quarter of 2013, compared to $57.3 million for the second quarter of 2012. Diluted earnings per share grew 25% to a record $1.15, compared to $0.92 for the prior year's second quarter. The Company's second quarter results benefitted from a shift of about $7 million (or $0.08 per share) of marketing and systems related expenditures into the third quarter. Additionally, compared to prior expectations, second quarter results were negatively impacted by $0.03 per share as the Company now expects a higher full year effective income tax rate, given an earnings mix shift among its operating entities.

Kosta Kartsotis, Chief Executive Officer stated: "We are pleased to continue our positive momentum and report record second quarter results that surpassed both our revenue and earnings expectations. During the quarter we advanced each of our core growth initiatives with strength in our FOSSIL® and SKAGEN® brands and double-digit sales increases in our multi-brand watch portfolio and in jewelry. We continued to leverage the power of our brands and our distribution infrastructure to expand our international footprint, fueling robust revenue increases in both Europe and Asia. Our team made substantial progress on many key operational initiatives that drove significant gross margin expansion in the quarter. Our consistent positive performance continues to reflect the innovation in our watch and jewelry lines, the disciplined execution of our strategies by our team and our ability to capitalize on the inherent strength of our dynamic global operating model." 

1 of 5

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs