- Shares of
- The company reported an adjusted $0.64 earnings per share, and revenue of $929.8 million, beating Wall Street estimates.
- Wall Street analysts were impressed by Fossil's sales in wearables.
ADVERTISEMENT
Fossil explodes higher by 80% after blockbuster earnings (FOSL)
Fossil reported better-than-expected fourth-quarter earnings, indicating the company has made some progress in wearables, according to a Wall Street analyst.
ADVERTISEMENT
Recommended articles
Fossil shares skyrocketed as much as 80% after the company reported fourth-quarter earnings that beat Wall Street expectations.
The fashion designer reported adjusted earnings of $0.64 per share on revenue of $929.8 million, soaring past Wall Street's expectations of $0.38 per share and $889.7 million.
A Wall Street analyst said the company's progress in wearables, and its intention to "transform into a smaller, more profitable company" has helped send its shares higher. However, he warned the wearables market is very competitive, making it a tough road ahead for Fossil.
ADVERTISEMENT
"Progress is starting to show in the numbers, but the crowded wearables landscape and weak wholesale traction make us question FOSL's ability to grab top share [long term]," wrote Randal Konik of Jefferies, in a note.
Sales of wearables grew 40% year-over-year during the quarter. For 2017, sales of wearables nearly doubled to over $300 million, or 14% of total watch sales, the company reported.
Fossil also enjoyed some success in its digital channels, seeing a 31% increase in ecommerce sales.
Konik raised his price target to $16 per share from $6.
Fossil's stock was up 83.82% for the year.
ADVERTISEMENT
FOLLOW BUSINESS INSIDER AFRICA
ADVERTISEMENT
Recommended articles
Top 10 African countries with the lowest fuel prices in April 2024
How SafeHamsters unlocks the potential of crypto betting| Insider Tips
A look into the diverse tax reforms being implemented across Africa
Dubai firm to lend South Sudan $12.9 billion in exchange for 20 years oil repayment
China dethrones USA as the most influential global power in Africa: Report
Major African economies expecting inflation ease into next year, except Nigeria
10 African countries with the lowest price changes in household commodities
Dangote refinery outranks Europe's 10 largest refining facilities
