Fossil Sales Up 12% In Q4
Parent Company Of Supplier Fossil Corporate Markets
Fossil Group Inc., the parent company of supplier Fossil Corporate Markets (asi/55145), has reported that its sales for the quarter ended December 28 rose to $1.06 billion, a 12% year-over-year gain. Revenues improved in all business segments, including a 13% gain in wholesale sales and a 9% jump in direct-to-consumer sales.
“We’re very pleased with our fourth quarter results, which exceeded our expectations and concluded a successful year where we made significant progress on many of our strategic initiatives,” said Kosta Kartsotis, CEO of Fossil, in a statement. “We extended the reach of our business in key newer markets, like China, where our business grew more than 50% for the year.”
Fossil reported its Q4 watch sales rose by 14% percent to $833.8 million, while jewelry revenues grew by 27%, reaching $82.1 million. Among other major product categories, leather goods sales dropped 5% to $127.1 million, Fossil said. Geographically, the company’s fourth quarter wholesale segment increased 13.1% in North America and by 13.8% in Europe. Most European markets posted sales increases, with the strongest performances coming in the UK, Spain and Germany.
For all of 2013, Fossil announced sales rose 14% to $3.26 billion, with net income up to $378.2 million, a 10% gain. Looking ahead in 2014, Fossil expects its full-year sales will increase between 8% and 10%, eclipsing $3.5 billion. The company is also forecasting earnings of up to $7.30 per share.
“In 2014, our priorities are focused on building on the positive momentum in our business, as we continue to invest in and grow our brands,” Kartsotis said. “The considerable opportunities we have around the world, combined with our solid capital structure and strong cash flows, have us positioned to maintain our growth and pursue new expansion opportunities.”