NEW YORK (TheStreet) -- Shares of Fossil Group Inc (FOSL) are soaring, sharply up 7.68% to $111.72 in early market trading Wednesday, after the company announced its renewed global licensing agreement with Michael Kors (KORS) through 2014, as it reported better than expected third quarter earnings results late yesterday.
Michael Kors first partnered with Fossil Group in 2004 to design, develop and distribute watches under the Michael Kors label. Currently, the companies are collaborating to grow the men's watch business.
Fossil reported earnings of $1.96 per share for the third quarter, surpassing analysts' estimates of $1.82 per share. Revenue was up 10.4% year over year to $894.5 million for the quarter, topping analysts' estimates of $879.05 million.
Also, Fossil Group announced a $1 billion share repurchase program. The buyback plan will expire in December 2018.
Separately, 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 multiple strengths, 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, expanding profit margins and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company has had sub par growth in net income."