Fossil stock soars after company posts revenue beat, narrower-than-expected loss
Shares of Fossil Group Inc. closed 12.8% higher after the company posted a first-quarter loss that wasn’t as steep as analysts had been expecting. Fossil reported a first-quarter net loss of $48.3 million, or 99 cents a share, whereas it lost $48.2 million, or $1.00 a share, a year earlier. Analysts had been expecting a loss per share of $1.29, according to FactSet. The company generated revenue of $569 million for the quarter, down from $582 million a year ago but ahead of the FactSet consensus estimate of $539.1 million. “This performance reflects the disciplined execution of our strategy which capitalizes on our strong design, innovation, distribution and operating capabilities,” Chief Executive Kosta Kartsotis said in a release. Fossil’s connected watch sales “nearly doubled” during the quarter. The company projects that revenue for the full year will fall 5% to 12% and that revenue for the current quarter will drop 4% to 11%. The stock is down 0.2% in after-hours trading. Fossil shares are down 4.2% over the past 12 months, while the S&P 500 has gained 11%.