-- Net sales increased 14.1% to $523.5 million compared to $458.7 million;
-- Gross profit increased 9.1% to $260.0 million, or 49.7% of net sales, compared to $238.4 million, or 52.0% of net sales;
-- Operating income totaled $33.2 million, or 6.3% of net sales, compared to $40.8 million, or 8.9% of net sales; and
-- Net income totaled $21.0 million, or $0.31 per diluted share inclusive of $0.02 for stock option expense, compared to $33.5 million, or $0.45 per diluted share ($22.5 million, or $0.30 per diluted share, excluding the nonrecurring tax benefit pursuant to the American Jobs Creation Act of 2004).
During the Second Quarter worldwide net sales rose 14.6% (14.4% excluding currency impact) in comparison to the prior year quarter, primarily driven by sales growth in the company's international, domestic accessories and company-owned retail business segments. Total international wholesale sales rose 19.3% (19.0% excluding currency impact).
Sales in Europe increased 18.7% (18.5% excluding currency impact), primarily as a result of the launch of the ADIDAS watch and DIESEL jewelry categories that on a combined basis generated net sales of $7.7 million during the Second Quarter. In addition, European net sales increased from sales volume growth in FOSSIL jewelry, licensed watches and FOSSIL watches.
Other international sales increased 20.6% (19.8% excluding currency impact) as a result of growth in licensed watches and the launch of ADIDAS watches.
marketing@alchempro.com
