Watch and accessories maker Fossil Inc reported second quarter net sales and earnings for the thirteen-week ('Second Quarter') and twenty-seven week ('Six Month Period') periods ended July 8th 2006.
Second Quarter Results (2006 vs 2005):
-- Net sales increased 14.6% to $259.2 million compared to $226.2 million;
-- Gross profit grew 8.3% to $127.0 million, or 49.0% of net sales, compared to $117.3 million, or 51.8% of net sales;
-- Operating income totaled $16.2 million, or 6.2% of net sales, compared to $16.3 million, or 7.2% of net sales; and
-- Net income totaled $11.2 million, or $0.16 per diluted share inclusive of $0.01 per diluted share for stock option expense, compared to $9.7 million, or $0.13 per diluted share.
"A shift in advertising expenses from the second quarter to the first quarter this year, in comparison to 2005, in addition to a lower effective tax rate added positively to the Second Quarter results, allowing us to report a healthy 23% increase in earnings per share," began Mike Kovar, Senior VP and CFO.
"The Second Quarter also marked solid progress toward achieving our key strategic initiatives. We increased our watch sales globally and continued to experience solid growth in our accessories and jewelry categories. Our retail stores reported strong comp and door growth resulting in increasing profits for this segment during the second quarter. In addition, sales associated with new business initiatives, including ADIDAS watches, assisted by the backdrop of the World Cup games in Germany, added nicely to the quarter."
marketing@alchempro.com
