Fossil smashes earnings expectations, stock jumps 14%

Fossil shares surged by as much as 14% in after-hours trading on Tuesday after the company reported fourth-quarter earnings that were better than analysts had expected.

The maker of watches and jewellery reported adjusted earnings per share of $1.46, topping analysts’ forecast for $1.30 according to Bloomberg.

Its net sales totaled $992.5 million, outpacing the expectation for $928.2 million.

Comparable store sales, or sales at stores open for at least year, rose 1%, beating the estimate for a 2.4% drop.

“We look back on 2015 as a year of both significant challenges and accomplishments,” said Fossil CEO Kosta Kartsotis in the earnings statement. “We anticipated economic, competitive and consumer headwinds, which all materialised and in some cases intensified, putting pressure on sales and earnings.”

In its earnings outlook, Fossil projected a revenue drop of up to 3.5% to an increase of 1% in the best case scenario for the full-year 2016.

Fossil shares had fallen by as much as 65% ahead of the earnings release.

More to come, refresh this page for updates.

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