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Watch maker Fossil Inc announces Q2 results
09 Aug '05
9 min read
Texas based full range watch and related accessories maker Fossil Inc reported second quarter net sales and earnings for the thirteen-week ("Second Quarter") and six-month periods ended July 2, 2005.
"While their fashion watch business remained challenging in some of their key markets, they experienced solid growth in their accessory businesses and a number of their new initiatives. Additionally, company retail stores continued to deliver double-digit growth," began Mike Kovar, Senior Vice President and Chief Financial Officer.
"While falling short of their sales expectations for the quarter they remain confident that significant newness added to their fashion watch assortments in the last few months will result in an improved sales performance during the more seasonal second half of the year. Although not implemented until mid-quarter, their cost cutting initiatives resulted in a reduction of planned operating expenses that allowed us to meet their operating income target even though sales were below internal plans," concluded Kovar.
During the Second Quarter worldwide net sales rose 9.8 percent (8.3 percent excluding currency gains) with growth across all segments and most major brands and product lines. Total international wholesale sales rose 9.7 percent (6.5 percent excluding currency gains) with sales in Europe increasing 6.2 percent (2.5 percent excluding currency gains), primarily as a result of sales volume growth in FOSSIL and ZODIAC watches, FOSSIL jewelry and accessory products.
"While their fashion watch business remained challenging in some of their key markets, they experienced solid growth in their accessory businesses and a number of their new initiatives. Additionally, company retail stores continued to deliver double-digit growth," began Mike Kovar, Senior Vice President and Chief Financial Officer.
"While falling short of their sales expectations for the quarter they remain confident that significant newness added to their fashion watch assortments in the last few months will result in an improved sales performance during the more seasonal second half of the year. Although not implemented until mid-quarter, their cost cutting initiatives resulted in a reduction of planned operating expenses that allowed us to meet their operating income target even though sales were below internal plans," concluded Kovar.
During the Second Quarter worldwide net sales rose 9.8 percent (8.3 percent excluding currency gains) with growth across all segments and most major brands and product lines. Total international wholesale sales rose 9.7 percent (6.5 percent excluding currency gains) with sales in Europe increasing 6.2 percent (2.5 percent excluding currency gains), primarily as a result of sales volume growth in FOSSIL and ZODIAC watches, FOSSIL jewelry and accessory products.
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