Fossil (FOSL) beat analysts’ first quarter earnings expectations, but the company is seeing sales slow in Europe. The stock’s 34% drop today indicates a near-panic.
Fossil’s 93 cents of EPS beat analysts’ expectations by a penny. But the watch and accessories maker reduced its full year earnings expectations to a range of $5.30 to $5.40 from a range of $5.40 to $5.50. Analysts have been expecting the company to earn $5.56 per share. Its second quarter outlook also came up well short of expectations.
[I]n Europe, a softening macro environment toward the end of the First Quarter and changes in our merchandising and assortment strategies across certain categories negatively impacted both our wholesale and retail sales in that region,” said CFO Mike Kovar in a statement.
Fossils’ European sales actually rose during the quarter, but Europe is making up a smaller portion of overall sales at the company, dropping to 25.9% from 28.3% a year ago.
Fossil’s weakness appears to be hitting the rest of the luxury goods sector. While luxury companies talk up their growth in Asia, they are clearly still heavily dependent on European sales.
Nasdaq quotes delayed at least 15 minutes, all others at least 20 minutes.
Markets are closed on certain holidays. Stock Market Holiday List
By accessing this page, you agree to the following
Press Release Service provided by PRConnect.
Stock quotes supplied by Telekurs USA
Postage Rates Bots go here