Fossil Shares Tank On Sizeable Loss, Departure Of CFO

By Sue Chang Markets MarketWatch Pulse

Shares of Fossil Group Inc. cratered in Tuesday's extended session after the fashion accessory company posted a sizeable loss on the back of a steep drop in stock price. It also announced the departure of its finance chief. Fossil reported it swung to a second-quarter loss of $344.7 million, or $7.11 a share, from a profit of $6 million, or 12 cents a share, a year earlier. Excluding intangible asset impairment charges of $6.50, Fossil would have lost 61 cents a share. The charge was a result of "sustained compression of the company's market capitalization that occurred throughout most of the latter part of the second quarter of fiscal 2017," according to the company. Fossil shares have plummeted 54% year to date. Revenue fell to $596.8 million from $685.4 million. Analysts surveyed by FactSet had projected a loss of 33 cents a share on revenue of $618 million. The company projected sales to drop 8.5% to 4.5% and loss per share of $7.42 to $6.62 in the third quarter. Separately, Fossil said Chief Financial Officer Dennis Secor has resigned and will be replaced by Jeffrey Boyer. Shares skidded 23% after hours.

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