NEW YORK (TheStreet) -- Shares of Fossil Group (FOSL) - Get Report are advancing in after-hours trading on Tuesday following the Richardson, TX-based fashion accessories retailer's higher-than-expected second quarter results.
After today's market close, Fossil reported earnings of 12 cents per share, surpassing Wall Street's expected 9 cents per share. Revenue came in at $685 million, which exceeded analysts' projected $671.86 million.
For the 2015 second quarter, the company posted earnings of $1.12 per share and revenue of $739.98 million.
Worldwide sales declined 7% year-over-year to $54.6 million, driven by a decrease in Fossil's multi-brand licensed watch portfolio and the negative impact of foreign currency changes. A stronger U.S. dollar impacted sales by $6.8 million and reduced diluted earnings by 4 cents per share.
"Our financial results for this quarter, while below last year, were very much in line with our expectations from both a top and bottom line perspective," said Fossil CEO Kosta Kartsotis in a statement. "We're pleased that our sales trends, though still challenging, remained relatively stable considering the disruptive environment."
For the third quarter, Fossil said it expects earnings between 15 cents per share and 40 cents per share, below Wall Street's projections of 68 cents per share. The company forecasts third quarter revenues decreasing 2% to 6%.
Fossil's full-year earnings outlook is between $1.80 per share and $2.65 per share, while analysts expect earnings of $2.06 per share. Revenue is projected to fall in the range of 1.5% to 5% for 2016, the company added.
Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author. TheStreet Ratings has this to say about the recommendation:
We rate FOSSIL GROUP INC as a Sell with a ratings score of D+. This is driven by a few notable weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share, deteriorating net income, weak operating cash flow, generally disappointing historical performance in the stock itself and disappointing return on equity.
You can view the full analysis from the report here: FOSL