On Aug. 14, Fossil (NYSE:FOSL) announced second-quarter earnings for the period ended July 7.

  • In the second quarter, Fossil extended sales by 18.2% to $306.5 million, boosted by strong international gains.
  • Earnings increased 30.6% to $14.7 million, or $0.21 per share, but its estimates for the third quarter of $0.37 per share, excluding grant review expenses, is below current analyst estimates of $0.39 per share.
  • Over on its balance sheet, the company reduced inventory by 10.1% in the quarter and has no long-term debt.
  • Despite its resurgence, Fossil earns just a two-star rating (out of a possible five) over at Motley Fool CAPS. Think investors have lost track of time? Head on over to the CAPS community and offer your own opinion.

(Figures in millions, except per-share data.)

Income Statement Highlights

Q2 2007

Q2 2006

Change

Sales

$306.5

$259.2

18.2%

Net Profit

$14.7

$11.2

30.6%

EPS

$0.21

$0.16

31.3%

Diluted Shares

69.7

68.3

2.1%

Get back to basics with the income statement.

Margin Checkup

Q2 2007

Q2 2006

Change*

Gross Margin

49.1%

49%

0.1

Operating Margin

7.5%

6.2%

1.3

Net Margin

4.8%

4.3%

0.5

*Expressed in percentage points

Margins are the earnings engine.

Balance Sheet Highlights

Assets

Q2 2007

Q2 2006

Change

Cash + ST Invest.

$177.9

$78.3

127.1%

Accounts Rec.

$151.3

$128.5

17.8%

Inventory

$237.8

$264.6

(10.1%)

Liabilities

Q2 2007

Q2 2006

Change

Short-Term Debt

$9.5

$52.1

(81.7%)

The balance sheet reflects the company's health.

Cash Flow Highlights

I guess they're still digging up the cash flow statement.

Free cash flow is a Fool's best friend.

Related Foolishness:

• Foolish Forecast: Is Fossil Ready to Be Discovered?

• Fossil Unfrozen

Fool by Numbers is designed to give you the raw earnings information in a timely fashion, putting all the numbers you need in one easy-to-read place. But at The Motley Fool, we believe numbers tell only part of the story, so check Fool.com for more of our in-depth discussion of what the numbers mean.

At the time of publication, Fool contributor Mike Cianciolo held no position in Fossil.