Fashion accessories retailer Fossil Group Inc., parent company of Fossil Corporate Markets (asi/55145), announced this week that its second-quarter earnings jumped 18% as it recorded sales increases in all of its business segments. Its sales increased 11% to $706.2 million in the quarter, driven by double-digit growth in the multi-brand global watch portfolio. Retail same-store sales were flat compared with a year ago, while direct-to-customer revenue increased 16% and revenues from its North American wholesale division rose 4.4%.
"Fossil remains one of the few consumer companies delivering strong double-digit growth in earnings and top line," said BB&T Capital Markets analyst Scott Krasik.
Fossil, which designs watches, jewelry, handbags, belts and clothing, has seen double-digit percentage sales increases for over three years, aided by its expansion in Asia, but it has been challenged in recent quarters by the European debt crisis. The company sells watches ranging from $7 to upwards of $2,000 under brands such as Armani Exchange, Marc by Marc Jacobs and Michael Kors.
"We are planning on expanding into additional brands over the next couple of years and mostly for Asia," said Dennis Secor, Fossil chief financial officer, on a conference call with analysts.