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Watch maker Fossil Inc Q4 profit declines
21 Feb '06
4 min read
The net sales for the fiscal year ended December 31st 2005 rose 8.4 percent to slightly over $1.0 billion compared to $960.0 million in 2004. The gross profit was $533.7 million, or 51.3 percent of net sales compared to $504 million or 52.5 percent of net sales in 2004.
The operating income totaled $109.4 million, or 10.5 percent of net sales compared to operating income of $135.4 million or 14.1 percent of net sales in 2004. Net income was $78.1 million, or $1.07 per diluted share compared to net income of $90.6 million or $1.22 per diluted share in 2004.
Worldwide net sales rose 1.8 percent during the fourth quarter with particular strength in luxury watches, accessory and jewelry categories as well as increased sales from company-owned stores.
Total international wholesale sales declined 5.3 percent with Europe sales declining 8.4 percent. The decline in Europe sales was primarily a result of decreased sales volume in FOSSIL watches partially offset by sales volume growth in FOSSIL jewelry and licensed watches. Other international sales rose by 4.8 percent, mainly due to sales volume increases related to licensed watches. Domestic wholesale sales rose by 4.4 percent, which included sales volume growth in accessories and MICHELE, mass market and licensed watches. These increases were partially offset by an 18.6 percent decline in FOSSIL watch sales.
Worldwide net sales for fiscal 2005 increased 8.4 percent primarily due to sales volume growth in the company's domestic accessories business and increased sales from company-owned retail stores primarily driven by a 25.7 percent increase in the number of stores opened during 2005.
The operating income totaled $109.4 million, or 10.5 percent of net sales compared to operating income of $135.4 million or 14.1 percent of net sales in 2004. Net income was $78.1 million, or $1.07 per diluted share compared to net income of $90.6 million or $1.22 per diluted share in 2004.
Worldwide net sales rose 1.8 percent during the fourth quarter with particular strength in luxury watches, accessory and jewelry categories as well as increased sales from company-owned stores.
Total international wholesale sales declined 5.3 percent with Europe sales declining 8.4 percent. The decline in Europe sales was primarily a result of decreased sales volume in FOSSIL watches partially offset by sales volume growth in FOSSIL jewelry and licensed watches. Other international sales rose by 4.8 percent, mainly due to sales volume increases related to licensed watches. Domestic wholesale sales rose by 4.4 percent, which included sales volume growth in accessories and MICHELE, mass market and licensed watches. These increases were partially offset by an 18.6 percent decline in FOSSIL watch sales.
Worldwide net sales for fiscal 2005 increased 8.4 percent primarily due to sales volume growth in the company's domestic accessories business and increased sales from company-owned retail stores primarily driven by a 25.7 percent increase in the number of stores opened during 2005.
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