Fossil Reports Record Q2 Sales

Fossil Inc., a producer and retailer of consumer fashion accessories including
men’s and women’s fashion watches and jewelry, has reported record-breaking
second-quarter net sales and earnings. The company said net income increased by
227.8 percent to $54.5 million compared with $16.6 million in the second
quarter of 2009. Net sales increased 30.6 percent to $412.6 million compared
with $315.9 million in the same period last year. Operating income increased by
186.3 to $64.3 million, up from $22.5 million a year ago.
 
Fossil’s report said “strong increases in watch sales globally, and to a lesser
extent, the growth of the jewelry category in North America and Europe” were
factors driving the sales increases. Executive vice president and chief
financial officer Mike Kovar cited an improving global economy and a resurgence
in the fashion watch category for a 42 percent increase in Fossil’s
second-quarter wholesale watch business.

Fossil said it expected third-quarter net sales to increase by 25 percent to 27
percent, and fourth-quarter net sales to increase by 14 percent to 16 percent.