Fossil (NASDAQ:FOSL) earnings for the fashion company’s second quarter of 2020 have FOSL stock taking off after-hours Wednesday. That’s thanks to its adjusted losses per share of 28 cents easily beating Wall Street’s estimate of $1.71. Its revenue of $259 million also blows past analysts’ estimate of $182.1 million.
Now, let’s take a closer look at the most recent Fossil earnings report.
- Adjusted per-share losses are 600% wider than the 4 cents reported in the second quarter of 2019.
- Revenue for the quarter comes in 48% lower than the $501 million reported during the same time last year.
- Operating loss of $36.8 million is a negative switch year-over-year compared to an operating income of $1.7 million.
- The Fossil earnings also have it reporting a net loss of $22.5 million.
- That’s 208.2% wider than the company’s net loss of $7.3 million in the same period of the year prior.
Kosta Kartsotis, chairman and CEO of Fossil, said this about the earnings report.
“Our second quarter results were impacted by broad-based global store closures due to COVID-19 throughout much of the quarter. … In navigating this challenging environment, we have taken aggressive actions to increase liquidity and reduce costs, and further engaged with our consumers through digital initiatives and product innovation.”
Fossil isn’t providing guidance for 2020 due to the novel coronavirus. Even so, the company says it expects worldwide net sales to decrease by 35% to 45% during the third quarter of the year.
FOSL stock was up 5.6% after markets closed on Wednesday.
As of this writing, William White did not hold a position in any of the aforementioned securities.