There is no need to carbon date Fossil's
Excelling in the fashion industry can be difficult, but Fossil has made operating in the competitive watch market look easy. The company reported an almost 30% increase in first-quarter diluted earnings per share to $0.22, which beat the consensus analysts' estimate of $0.20. This windfall also nudged the company to raise guidance for the full year to about $1.20, from the previously expected $1.14.
Fossil also avoided the tar pit by reporting no long-term debt at the quarter's end, and it also added another $45.5 million in cash during the period. Net sales for the quarter advanced almost 18%, which compares very favorably with competitors such as Guess
Fossil has done a wonderful job avoiding extinction by deftly placing its products in key locations such as Federated Department Stores
With dressing down still popular in the business world, Fossil has taken advantage of its stylish yet casual branding strategy. Companies like Swatch have taken a lead in more casual wrist-timers, while Fossil has jumped in and filled a niche for dressy yet casual watches.
Fossil's shares have almost doubled over the past year, rewarding patient shareholders and easily beating the S&P 500. With such bright prospects, the company must guard against overextending its product line and offering watches that become as dated as dinosaurs.
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Fool contributor Phil Wohl spent more than 12 years on Wall Street and now concentrates his writing on more fictional characters. He has no stake in any firm mentioned above.