Watch maker Fossil Inc announces Q2 results

09 Aug '05

9 min read

Other international sales increased 17.5 percent (15.5 percent excluding currency gains) as a result of sales volume increases in licensed brands and FOSSIL watches and EMPORIO ARMANI jewelry. Second Quarter sales of the Company's domestic watch business declined by 1 percent, primarily as a result of sales volume declines in MICHELE and FOSSIL watches offset by sales volume increases in mass market and ZODIAC watches. The decline in MICHELE was primarily due to the anniversary of an initial channel fill with a significant customer in the prior year quarter.

Domestic sales of FOSSIL watches decreased approximately 2.0 percent during the Second Quarter, representing an improving trend versus the first quarter. Domestic sales of the Company's accessory and sunglass businesses rose 19.0 percent compared to the prior year quarter with particular strength in FOSSIL women's and men's accessories and RELIC eyewear. Company-owned retail store sales increased 19.8 percent as a result of a 16 percent increase in the average number of stores opened during the Second Quarter and comparable store sales gains of 1.8 percent.

For the first six months of fiscal year 2005, consolidated net sales increased 13.1 percent (11.6 percent excluding currency gains) and were principally due to increased sales in the Company's other international, domestic accessory and retail segments as well as revenues associated with the recently acquired MICHELE business and new mass market initiative.

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