Fossil Group Q1 Profit Tops Estimates - Quick Facts

(RTTNews) - Fossil Group, Inc. (FOSL) reported first-quarter net income of $38.1 million compared to $66.3 million for the first quarter of fiscal 2014. Earnings per share were $0.75, compared to $1.22. In constant currency, earnings per share for the first quarter of fiscal 2015 were $0.88, including a restructuring charge of $0.16 per share.

On average, 12 analysts polled by Thomson Reuters expected the company to report profit per share of $0.64 for the quarter. Analysts' estimates typically exclude special items.

The company noted that its results for the first quarter of fiscal 2015 included thirteen weeks compared to a fourteen week period in fiscal 2014.

Worldwide net sales decreased 7% or $51.4 million. On a constant currency and comparable calendar basis, sales increased 5%, reflecting sales growth in Europe, Asia and the Americas as well as all product categories and increases in the SKAGEN and FOSSIL brands compared to last fiscal year.

First quarter net sales were $725 million. On a constant currency basis and excluding the additional week, first quarter net sales increased 5%. Analysts expected revenue of $732.02 million for the quarter.

While the company maintained its full year fiscal 2015 guidance on a constant dollar basis, it has updated full year fiscal 2015 guidance to reflect continued currency volatility. For fiscal 2015, given continued currency volatility, the company now expects: Net sales to be in the range of a 4% decrease to a 1% increase; and earnings per share in a range of $5.25 to $6.05. For fiscal 2015, adjusted guidance is: Net sales to increase in the range of 3% to 7%; and earnings per share in a range of $7.00 to $7.60. Analysts expect the company to report fiscal 2015 earnings per share of $5.67.

For the second quarter of fiscal 2015, the company expects: Net sales to decrease in the range of 3.0% to 0.5%; and earnings per share in a range of $0.80 to $0.91. For the second quarter of fiscal 2015, adjusted guidance is: Net sales to increase in the range of 4% to 6%; and earnings per share in a range of $1.18 to $1.29. Analysts expect the company to report second-quarter earnings per share of $0.70.