The 10-second takeaway
For the quarter ended June 30 (Q2), Fossil met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue increased and GAAP earnings per share improved.
Gross margins were steady, operating margins contracted, net margins shrank.
Fossil logged revenue of $636.1 million. The 13 analysts polled by S&P Capital IQ predicted sales of $635.1 million on the same basis. GAAP reported sales were 14% higher than the prior-year quarter's $556.7 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.92. The 16 earnings estimates compiled by S&P Capital IQ predicted $0.79 per share. GAAP EPS of $0.92 for Q2 were 15% higher than the prior-year quarter's $0.80 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 56.0%, about the same as the prior-year quarter. Operating margin was 13.9%, 160 basis points worse than the prior-year quarter. Net margin was 9.0%, 20 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $742.1 million. On the bottom line, the average EPS estimate is $1.38.
Next year's average estimate for revenue is $2.93 billion. The average EPS estimate is $5.32.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 539 members out of 599 rating the stock outperform, and 60 members rating it underperform. Among 180 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 172 give Fossil a green thumbs-up, and eight give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Fossil is outperform, with an average price target of $102.17.
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Seth Jayson owned shares of the following at the time of publication: Fossil. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool owns shares of Fossil. Motley Fool newsletter services recommend Fossil. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.