Fossil profit jumps as watches drive sales
(Reuters) - Accessory maker and retailer Fossil Inc (FOSL.O) reported a 28 percent rise in net profit and higher-than-expected revenue, as the company's expanding range of watches proved attractive to shoppers.
Shares of the company, which sells accessories under its namesake brand as well as those of Michael Kors (KORS.N), Armani Exchange and Marc by Marc Jacobs, were up about 5 percent before the bell. They closed at $107.46 on Monday on the Nasdaq.
Fourth-quarter earnings rose to $151.1 million, or $2.51 per share, from $117.9 million, or $1.87 per share, a year earlier.
On an adjusted basis, Fossil earned $2.27 per share.
Revenue rose 14 percent to $947.7 million.
Analysts expected earnings of $2.26 per share on revenue of $930.4 million, according to Thomson Reuters I/B/E/S.
Sales growth was driven by the double-digit growth in its global watch portfolio, the company said.
The Skagen brand, which Fossil bought last year, contributed to the sales rise across North America, Europe and Asia pacific.
Richardson, Texas-based Fossil also signed a global licensing agreement with the Tory Burch Company on Tuesday to collaborate on design, development and distribution the Tory Burch brand of watches.
(Reporting by Arpita Mukherjee in Bangalore; Editing by Sreejiraj Eluvangal and Roshni Menon)