Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of fashion accessories maker Fossil
So what: The stock was hammered 40% in early May after management cut its outlook due to weakness in Europe and Asia, but a clear second-quarter beat -- EPS of $0.92, versus the consensus estimate of just $0.78 -- coupled with a better-than-expected outlook for 2012 takes some sting out of that beating. While persistent trouble in Europe has weighed heavily on the space, Fossil's strong results are lifting the turnaround hopes of other luxury brands like Coach
Now what: For the full year, management now sees adjusted EPS of $5.29 to $5.34, ahead of Wall Street's estimate of $5.28. "We believe we are well positioned in the second half of the year to execute our growth strategies and capitalize on our owned infrastructure and exceptional talent to further advance our market penetration for fashion watches and accessories worldwide," said CFO Mike Kovar in a statement. With the stock still well off its 52-week highs even after today's huge rally, there might even be some time to buy into that bullishness.
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