Fossil Shares Jump After Kors License Renewal, Third-quarter Profit Beats

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Fossil Group Inc. shares jumped 11% in after-hours trading after the watch and accessories maker reported better-than-expected third-quarter profit and sales. Fossil said it had net income of $103.7 million, or $1.96 a share, in the quarter, up from $89.7 million, or $1.58 a share, in the year-earlier period. That beat the FactSet consensus of $1.82 a share. Sales rose to $894.5 million from $810.4 million, also above the FactSet consensus of $878.4 million. The company sees profit of $2.91 to $3.21 a share in the fourth quarter and $7 to $7.30 a share for the year. Analysts surveyed by FactSet were looking for profit of $3.16 a share in the fourth quarter and $7.16 for the year. The company and Michael Kors Holdings Ltd. also said they renewed their global licensing agreement through 2024. That had been one of the key investor concerns. Shares have dropped 14% in the year to date, while the S&P 500 has gained 10%.

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