Fossil Group Inc (NASDAQ:FOSL) posted its fourth-quarter results Tuesday, sending shares skyrocketing after the bell.
The watchmaker announced a net loss of $79.9 million, compared to income of $49.7 million in the year-ago quarter. Its diluted earnings per share were $1.65 per share, due in part to tax charges of $2.20 per diluted share as a result of changes in the U.S. tax code, as well as a restructuring charge of nine cents per diluted share.
On an adjusted basis, Fossil Group announced earnings of 64 cents per share, below the year-ago adjusted earnings of $1.03 per share. The figure topped analysts’ expectations of 40 cents per share.
Revenue came in at $920.8 million, falling from its year-ago sales of $959.2 million. The figure came in ahead of the Wall Street consensus estimate of $890 million for the quarter.
Part of the company’s success comes from its decision to streamline operations and focus on wearables, which will help increase gross margins in 2018. Fossil Group’s e-commerce sales received a 31% boost during the fourth quarter.
“In the year ahead, we expect to be a smaller yet more profitable company that is on a solid path for the future,” CEO Kosta Kartsotis said in a statement. “Our priorities are focused on delivering innovative wearable and traditional watch styles while improving performance in the handbag and jewelry categories and driving increases in digital sales.”
FOSL stock surged 55.6% after the bell Tuesday.