Fossil (FOSL) reported earnings on Tue 10 May 2016 (a/h)

** charts before earnings **

 

** charts after earnings **

 

Fossil misses by $0.02, misses on revs; guides Q2 EPS below consensus, revs below consensus; guides FY16 EPS below consensus, revs in-line  :

• Reports Q1 (Mar) earnings of $0.12 per share, $0.02 worse than the Capital IQ Consensus of $0.14; revenues fell 9.0% year/year to $659.8 mln vs the $667.04 mln Capital IQ Consensus.
  • 'While our financial results were in line with our expectations, they were below last year given the persistent headwinds pressuring the traditional watch category and the challenging retail environment, particularly in our wholesale channel. We are disappointed that those headwinds have intensified, which will impact this year's expectations, despite our further expense management'.
  • Global retail comps for the first quarter of fiscal 2016 decreased 3% compared to the first quarter of fiscal 2015. A strong comparable sales increase in Europe was offset by a decline in the Americas and Asia. A comparable sales increase in leathers and jewelry was offset by a decline in watches.
  • During the first quarter of fiscal 2016, gross margin decreased 250 basis points to 52.8%.
• Co issues downside guidance for Q2, sees EPS of 0.00-0.15 vs. $0.58 Capital IQ Consensus Estimate; sees Q2 revs of Down 8-10% y/y(Approx $665-679 mln) vs. $701.75 mln Capital IQ Consensus Estimate.
• Co issues guidance for FY16, sees EPS of $1.80-2.80 vs. $3.03 Capital IQ Consensus Estimate; sees FY16 revs of Down 1.5-5.0% (Approx $3.066-3.17 bln; Prior guidance was a decline of 1.0-3.5%) vs. $3.14 bln Capital IQ Consensus Estimate.