Fossil Group Incorporated, a leading retailer of fashion accessories, reported higher-than-expected overall profit and sales for the year’s third quarter because of recent strong demand when it comes to company’s jewelry and watches, sending Fossil’s shares increased by 18.5% during extended trading.
Fossil Group Incorporated, a seller of watches like Skagen and Fossil, also stated that their company has already authorized a $1B program aimed to repurchase shares that will end by Dec 2018.
The retailer based in Texas, stated that overall jewelry sales increased to 23% during this year’s quarter.
Fossil has been obtaining the many benefits of their move of revamping their jewelry line and shifted to “affordable luxury” that has led sales of handbags and watches to increase.
Overall watch sales increased to 12.4%, amounting to $696.3M during the year’s third quarter that ended October 4, contributing above 3 quarters of Fossil’s total revenue.
Because of these developments, Fossil has narrowed down their forecast for profit this year.
Thomson Reuters I/B/E/S stated that Fossil stated that they are now expecting to earn about $7.00 to $7.30 for every share this year, falling in expectations recorded by analysts, which is $7.15 for every share.
Fossil Group Incorporated earlier forecasted values from $6.95 to $7.35 for every share, and expects current overall quarter earnings amounting to $2.91 to $3.21 for every share. Overall sales growth, meanwhile, is expected to be 3% to 6%.