Shares in Fossil Group Inc. tumbled in extended trading Tuesday after the watch and accessories maker posted fourth-quarter results and an outlook for the current quarter that fell short of Wall Street expectations.
The downturn came despite the company announcing a licensing deal with Kate Spade & Co.
Richardson, Texas-based Fossil reported fourth-quarter net income of $154.1 million, or $3 a share. That was up from $148.5 million, or $2.68 a share, a year earlier.
The average estimate of analysts surveyed by Zacks Investment Research was for earnings of $3.10 per share in the latest quarter.
Its fourth-quarter revenue of $1.06 billion was roughly flat with year-ago levels and also fell short of Street forecasts. Analysts expected $1.12 billion, according to Zacks.
For the year, the company reported profit of $376.7 million, or $7.10 per share. Revenue was reported as $3.51 billion.
For the current quarter ending in March, Fossil Group expects its per-share earnings to range from 59 cents to 69 cents. Analysts surveyed by Zacks had forecast adjusted earnings per share of $1.25.
The company expects full-year earnings in the range of $5.45 to $6.05 per share.
Fossil Group shares shed $13.32, or more than 13 percent, to $86 in extended trading following the release of the earnings report.
The company also announced a global licensing agreement for the design, development and distribution of kate spade new york watches through 2025. Fossil said it would launch the first watches developed in collaboration with Kate Spade in 2016.
Elements of this story were generated by Automated Insights (http://automatedinsights.com/ap) using data from Zacks Investment Research. Access a Zacks stock report on FOSL at http://www.zacks.com/ap/FOSL
Keywords: Fossil Group, Earnings Report