FOSL: Fossil Stock Slides on Weak Outlook

by Christopher Freeburn | May 14, 2014 10:36 am

FOSL: Fossil Stock Slides on Weak Outlook

Shares of Fossil Group (FOSL[1]) dropped more than 7% in Wednesday morning trading after the fashion accessory retailer issued a disappointing outlook for the current quarter[2].

FossilPromo FOSL: Fossil Stock Slides on Weak Outlook[3]FOSL said it expects second-quarter earnings of between 90 cents and 97 cents per share. That was well below the Q2 profit of $1.16 per FOSL share that analysts had forecast. FOSL also said that it anticipates sales growth of between 8% and 9.5% during the quarter. Analysts have estimated second-quarter sales growth of 9.5%, the Wall Street Journal noted.

For the first-quarter, FOSL said it earned $66.3 million, down 8.2% from $72.2 million in the prior-year period. EPS came in at $1.22, topping its previously-issued guidance of between $1.10 and $1.18. Sinking North American mall sales sent overall retail same-store sales down 2.4% compared to the prior year, despite gains in Europe and Asia.

Fossil stock closed at $111.45 on Tuesday.

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Endnotes:
  1. FOSL: http://studio-5.financialcontent.com/investplace/quote?Symbol=FOSL
  2. issued a disappointing outlook for the current quarter: http://online.wsj.com/news/articles/SB10001424052702303627504579560292946891318
  3. [Image]: http://investorplace.com/wp-content/uploads/2012/08/FossilPromo.jpg
  4. A New Target CEO – Just What the Doctor Ordered?: http://investorplace.com/2014/05/target-ceo-tgt-stock-gregg-steinhafel/
  5. WMT Stock – Why the Time Has Come to Buy Walmart: http://investorplace.com/2014/05/walmart-earnings-buy-wmt-stock/
  6. Avoid WFM Stock as Long as Mackey’s at the Helm: http://investorplace.com/2014/05/wfm-stock-whole-foods-earnings/

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