Fossil results beat Wall Street, shares up
(Reuters) - Fossil Inc (FOSL.O) posted a better-than-expected quarterly profit, helped by strong wholesale shipments in the U.S. and higher sales in the worldwide direct-to-consumer segment, and the watchmaker forecast a full-year profit that was above market expectations.
Fossil, which also sells jewelry, leather goods, sunglasses and apparel, earned $70.0 million, or $1.03 a share, compared with $46.3 million, or 69 cents a share, a year ago.
Revenue rose 13 percent to $527.8 million.
Sales from the company's U.S. wholesale segment rose 10 percent for the fourth quarter.
Fossil said global retail stores posted comparable store growth of 12.1 percent during the holiday quarter, from a 3.2 percent rise last year.
"Domestic wholesale returned to positive territory in the fourth quarter... as destocking at retail stores finally reversed a negative trend. The core watch category also saw a significant sales acceleration," Jefferies & Co analyst Randy Konik said in a note to clients.
Analysts on average were looking for a profit of 91 cents a share, before items, on revenue of $520.9 million, according to Thomson Reuters I/B/E/S.
Fossil, which competes with Movado Group Inc (MOV.N) and Coach Inc (COH.N) among others, forecast first-quarter 2010 profit of between 31 cents and 33 cents a share.
Analysts were looking for a profit of 30 cents a share for the first quarter.
The company sees full-year profit between $2.25 and $2.35, against analysts estimates of $2.21 a share.
"We expect to continue our positive sales momentum into fiscal 2010," CFO Mike Kovar said in a statement
Shares of the Richardson, Texas-based company were up 7 percent at $36.73 in pre-market trade. They closed at $34.22 Friday on Nasdaq.
(Reporting by Vidya Lakshmi in Bangalore; Editing by Jarshad Kakkrakandy)
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