Fossil Group (FOSL) Stock Tanking in After-Hours Trading Following Earnings Results

Fossil Group (FOSL) stock is plunging in after-hours trading following the release of the watchmaker's 2015 third quarter financial results.
By Amanda Schiavo ,

NEW YORK (TheStreet) -- Shares of Fossil Group (FOSL) - Get Report are declining by 10.45% to $45.68 in after-hours trading on Thursday, following the release of the watchmaker's 2015 third quarter financial results.

The company's latest financial results topped analysts' earnings expectations but fell short when it came to revenue. The company's financials declined when compared to the same period in the prior year. 

Fossil reported earnings of $1.19 per diluted share on revenue of $771.3 million for the three month period ended October 3.

Analysts surveyed by Thomson Reuters were expecting the Richardson, TX-based company to post earnings of $1.13 per share on revenue of $794.36 million for the most recent quarter.

Fossil Group's earnings came in at $1.96 per diluted share on net sales of $894.5 million for the 2014 third quarter.

"While our results for the third quarter were within our expectations, we are not satisfied with our overall performance. Currency aside, our Skagen and Fossil brands performed well in a challenging environment as our initiatives in branding and innovation resonated with consumers around the world," Fossil CEO Kosta Kartsotis said in a statement.

Additionally, the company announced it has entered into a definitive agreement to acquire connected accessories maker Misfit Inc. for $260 million. The deal is expected to close before the end of fiscal 2015.

Separately, TheStreet Ratings team rates FOSSIL GROUP INC as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:

We rate FOSSIL GROUP INC (FOSL) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its notable return on equity, reasonable valuation levels and good cash flow from operations. However, as a counter to these strengths, we find that the stock has had a generally disappointing performance in the past year.

You can view the full analysis from the report here: FOSL

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