Texas-based Fossil Group Inc., the parent company of Fossil Corporate Markets (asi/55145), reported revenue figures for its first quarter that beat the earnings estimates of most analysts. The company announced a 5% increase in net sales for Q1 after accounting for the strengthening U.S. dollar and removing an extra week from last year’s first-quarter results. Fossil’s Americas business was up 3% for the quarter on this constant currency basis, with the majority of growth occurring in Europe with a 9% increase. As is customary, Fossil did not break out ad specialty sales in its earnings statement.
“With our first quarter complete, we feel we are on track to achieve our goals for the year,” said Fossil CEO Kosta Kartsotis. “Our diversified global operating platform and powerful brands continued to serve us well, leading to first quarter net sales and overall performance that were in line with our current financial expectations.”
Fossil reported $38.1 million in net sales for the quarter, with the U.S. dollar impacting the company’s reported revenues by $45.2 million. Diluted earnings per share were $.75 for this quarter compared to $1.22 in last year’s quarter. The company posted a 30% increase in jewelry sales on a comparable currency basis, along with 4% growth in leathers and 3% in watches. For fiscal 2015, Fossil adjusted its guidance, calling for net sales to increase between 3% to 7% and diluted earnings per share in a range of $7.00 to $7.60.
“We remain very optimistic about our future, even while experiencing some near-term headwinds,” Kartsotis said. “Our numerous strategic advantages position us well to gain long-term market share in our growing industry. We remain committed to our 2015 priorities to invest in our owned brands, develop our digital capabilities and advance our initiatives in connected accessories, while continuing to drive our category leadership with our world class portfolio of licensed brands.”