Fossil Q1 sales rise 5%
Texas-based Fossil Group Inc. last week reported revenue figures for its first quarter that beat the earnings estimates of most analysts. The company announced a 5% increase in net sales for Q1 after accounting for the strengthening U.S. dollar and removing an extra week from last year’s first-quarter results.
Fossil reported a decrease in net sales of 7% or $51.4 million due to currency fluctuations but the company saw an increase in net sales by 5% on a constant currency basis.
On the constant currency basis, the company reported a 3% increase in sales in the Americas, a 9% increase in Europe, and a 4% increase in Asia compared to last year. Jewelry sales led the way with an increase of 30%, followed by leathers that increased 4% in sales, and finally watch sales that increased 3%.
Kosta Kartsotis, Chief Executive Officer, commented on the results: "With our first quarter complete, we feel we are on track to achieve our goals for the year. Our diversified global operating platform and powerful brands continued to serve us well, leading to first quarter net sales and overall performance that were in line with our current financial expectations."
The company forecasts sales to remain steady for the second quarter and the year on the constant currency basis. It also expects to continue to see a negative impact on sales due to the changes in currency.
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