Fossil Group (FOSL) Stock Plummeting Despite Earnings Beat

NEW YORK (TheStreet) -- Shares of Fossil Group (FOSL) are plummeting, sharply down 10.06% to $77.76 on heavy volume in midday trading Wednesday, after the watch company lowered the bottom end of its full-year guidance.

For fiscal 2015, the company now expect earnings in a range of between $7 per share to $7.60 per share. Analysts expect the company to earn $5.67 per share for the full year.

Still, the company released better-than-expected first-quarter earnings late Tuesday.

For the first quarter, Fossil earned 75 cents per share, compared to $1.22 per share a year ago, but still topping the 64 cents analysts were expecting, according to Thomson Reuters.

Revenue came in at $725 million for the period, lower compared to the $732.02 million analysts had expected.

About 4.41 million shares have exchanged hands as of 12:11 p.m. ET today, compared to its average trading volume of about 826 416 shares a day.

Richardson, TX-based Fossil Group is a global designer, specializing in consumer fashion accessories.

The company's offerings include a line of men's and women's fashion watches and jewelry, handbags, small leather goods, belts, sunglasses, soft accessories and clothing.

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 revenue growth, notable return on equity and attractive valuation levels. However, as a counter to these strengths, we also find weaknesses including weak operating cash flow and a generally disappointing performance in the stock itself."

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