Fossil (FOSL) reported earnings on Tue 14 Feb 2017 (a/h)

** charts before earnings **

 

** charts after earnings **

 

 ** one moth later **

Fossil beats by $0.11, misses on revs; guides Q1, FY17 EPS and rev well below consensus :

• Reports Q4 (Dec) adj. earnings of $1.32 per share, $0.11 better than the Capital IQ Consensus of $1.21; revenues fell 3.4% year/year to $959.2 mln vs the $981.28 mln Capital IQ Consensus as growth in the SKAGEN and FOSSIL brands was offset by a decline in the Company's multi-brand licensed watch portfolio with declines in traditional watches largely offset by growth in connected watches. Declines in leathers and jewelry and changes in foreign currency also negatively impacted net sales.
• Co issues downside guidance for Q1, sees EPS of ($1.03)-(0.92) vs. $0.11 Capital IQ Consensus Estimate; sees Q1 revs of down 9.5-13% to ~$574-597 mln vs. $659.18 mln Capital IQ Consensus Estimate.
• Co issues downside guidance for FY17, sees EPS of ($0.50)-0.20 vs. $1.91 Capital IQ Consensus Estimate; sees FY17 revs of flat to down 6.5% to ~$2.84-3.04 bln vs. $3.06 bln Capital IQ Consensus Estimate. 
• "Our mission in 2017 is very clear, to build upon the early success of wearables and execute against our New World Fossil initiative. We'll double our efforts in wearables by launching over 300 skus, introducing new brands to the platform and enhancing engineering to enable additional functionality in more stylish and slimmer cases. We'll continue to maximize the power of our owned brands and with an emphasis on innovation, work to stabilize and grow our licensed brands. We will also be relentless in pursuing the full potential of our New World Fossil initiative in 2017 and beyond. Driving efficiencies in everything we do from production to distribution and with our new operating structure in place, we'll have a tremendous opportunity to leverage as we drive growth."
• Peers: MOV