Fossil (NASDAQ:FOSL) wowed investors on Tuesday by more than tripling its profits in the second quarter and raising its full-year profit outlook well above expectations, sending the watchmaker’s stock jumping 7%.
The company said it made $54.5 million, or 80 cents a share, last quarter, compared with a profit of just $16.6 million, or 25 cents a share, in the year-earlier period. Analysts had projected EPS of just 34 cents.
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Revenue rose 31% to $412.6 million, easily topping the Street’s view of $382 million. Same-store sales jumped 15.5% from the year before.
“An improving global economy, a resurgence in the fashion watch category and our laser focus to be a leader in the introduction of new materials and design innovation combined to deliver a 42% increase in our wholesale watch business during the second quarter,” Mike Kovar, Fossil’s executive vice president and chief financial officer, said in a statement. “We are seeing balanced growth on a global basis and strong momentum among our major watch brands.”
Looking ahead, Fossil upped its 2010 outlook, now projecting EPS of $3.13 to $3.23, which would solidly beat the Street’s view for just $2.61.
Fossil also forecasted third-quarter EPS of 68 cents to 72 cents. Even the low end of that range would easily exceed estimates from analysts for EPS of 63 cents. Fossil said it sees third-quarter sales soaring by 25% to 27%, compared with expectations for growth of just 11%.
Shares of Fossil benefited from the results, rising 7.13% to $45.50 ahead of Tuesday’s opening bell. The stock has soared more than 12% over the past month and by 26% on the year.
Fossil also said its board of directors signed off on an additional $30 million in stock buybacks.