Shares of fashion watch and accessories maker, Fossil Group, Inc, formerly Fossil, Inc, saw surprisingly-strong trading volume on Tuesday following a stronger than expected earnings report. The company reported $1.96 earnings per share for the quarter, beating the analysts’ consensus estimate of $1.82 by $0.14. The company had revenue of $894.50 million for the quarter, compared to the consensus estimate of $877.39 million. During the same quarter last year, the company posted $1.58 earnings per share. Fossil Group’s revenue was up 10.4% compared to the same quarter last year.
Analysts surveyed by Thomson Reuters reportedly expected Fossil to reach a profit of $1.82 a share and a total sales increase of 8.5 percent to $879 million. Results were reported after the market closed.
Analysts at Wed reaffirmed a “buy” rating on shares of Fossil Group in a research note on Tuesday. They reportedly now have a $150.00 price target on the stock. Separately, analysts at Standpoint Research had raised their price target on shares of Fossil Group from $124.00 to $128.00 in a research note on Thursday, October 23rd. They now have a “buy” rating on the stock. Finally, analysts at Standpoint Research initiated coverage on shares of Fossil Group in a research note on Tuesday, October 14th. They set a “buy” rating and a $124.00 price target on the stock. One investment analyst has rated the stock with a sell rating, four have assigned a hold rating and ten have issued a buy rating to the stock. Fossil Group currently has a consensus rating of “Buy” and an average target price of $122.14.
Fossil makes most of its money in the third and fourth quarters. Analysts expect it to report a profit for the year of $7.16 a share on revenue of $3.57 billion. In addition to selling products to other retailers, Fossil sells directly to consumers with 558 stores, about half of which are in North America.
Sales were up in all its regions, but its gains were strongest in Europe, and China is a more challenging market to break into than the company first anticipated, Fossil CEO Kosta Kartsotis said during a call with analysts.
Moreover Fossil also said Tuesday that it has renewed its license agreement with Michael Kors for another 10 years. Last week, Michael Kors reported a strong third quarter profit and sales increase, but lowered its sales forecast blaming slower mall traffic.