Designer watch and accessory maker Fossil (NASDAQ:FOSL) reported stronger-than-expected fourth-quarter earnings on Tuesday and revealed a newly-inked licensing deal with Tory Burch.
Terms of the deal with privately-held Tory Burch were not disclosed. However, the companies in a joint statement said Fossil will help the popular designer expand into timepieces, assisting in the design, development and distribution of watches.
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The timepiece collection is expected to launch globally in late 2014.
The announcement comes as Richardson, Texas-based Fossil posted fourth-quarter net income of $151.1 million, or $2.53 a share, compared with a year-earlier profit of $117.9 million, or $1.88.
Excluding one-time items, Fossil said it earned $2.27 on an adjusted basis, topping average analyst estimates in a Thomson Reuters poll by a penny.
Revenue for the three-month period ended Dec. 29 climbed 14% to $948 million from $830 million, beating the Street’s view of $930 million.
Sales were up in all segments compared with last year, led by a 15% increase in North America wholesale sales, 19% improvement in Asia wholesale and 20% growth in direct to consumer sales.
"During the quarter, we grew sales in each of our major geographies and improved the overall profitability of our business, validating the strength of our business model and driven by our compelling portfolio of brands," said Fossil CEO Kosta Kartsotis.