Fossil Shares Jump After Earnings Exceed Expectations Despite Negative Currency Impact

Fossil Group Inc. shares rose 15% in after-hours trading after the company said fourth-quarter earnings beat estimates despite the negative impact of the strong U.S. dollar. The company said it had quarterly net income of $70.4 million, or $1.46 per share, down from $154.1 million, or $3 per share, for the same period last year. The FactSet consensus was $1.31 per share. The company said the stronger U.S. dollar lowered the earnings per share by 28 cents. Sales for the quarter totaled $992.5 million, down from $1.1 billion for the same period the previous year. The FactSet consensus was $928 million. The strong dollar brought sales down by $55.6 million, the company said. Fossil expects sales for the fiscal first quarter of 2016 to decrease between 7% and 10%, with earnings per share between 5 cents and 20 cents. The FactSet consensus estimates $661 million in sales and earnings of 41 cents per share. "The Company's guidance assumes that foreign currency exchange rates that affect the Company's financial results remain at prevailing levels," the earnings release said. Fossil shares are down 65% for the past 12 months while the S&P 500 is down 9.6% for the same period.