NEW YORK (TheStreet) -- Shares of Fossil Group Inc. (FOSL) are lower by -5.10% to $97.04 in mid-morning trading on Wednesday, after the company reported a drop in net income for the 2014 second quarter to $52.5 million, or 98 cents per diluted share, compared to $67.7 million, or $1.15 per diluted share for the same period in 2013.
“The decrease in diluted earnings per share resulted from lower operating income, as planned increases in operating expenses more than offset the benefit of higher sales, along with the impact of a lower share base,” the company said.
However, Fossil, which designs, markets, and sells fashion accessories including watches, handbags, and wallets, posted an increase in net sales to $773.8 million versus $706.2 million for the 2013 second quarter.
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TheStreet Ratings team rates FOSSIL GROUP INC as a Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:
"We rate FOSSIL GROUP INC (FOSL) a BUY. This is driven by several positive factors, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity, reasonable valuation levels, good cash flow from operations and growth in earnings per share. We feel these strengths outweigh the fact that the company has had sub par growth in net income."