Fossil posted record Q4 and full year results that showed the group’s third consecutive year of double-digit growth in watch sales and a strong performance.
In the final quarter to December 29 net sales rose 14% to a record US$948 million (£608.8m), net earnings were up 28% to US$151.1 million (£97m) and diluted earnings per share jumped 34% to US$2.51 (£1.61), a new record for the company.
Fossil chief executive Kosta Kartsotis said that the watch division of Fossil had delivered double-digit growth in the year and is well positioned to flourish in the coming months.
In April last year Fossil bought Skagen, a deal that the group said has generated US$43.5 million (£27.9m) of net sales in the fourth quarter. Skagen branded sales contributed US$93.8 million (£60.2m) to Fossil’s full-year results.
In Europe wholesale net sales were up 7.6% in the fourth quarter, with the UK delivering the strongest growth alongside France. Fossil said that sales growth in Europe was driven by increases in the watch category as well as the addition of the Skagen brand, which generated sales of US$19.2 million (£12.3m).
Kartsotis said: “We are pleased to report strong fourth quarter sales and earnings, concluding another record year of growth and significant progress toward our long-term goals.
“During the quarter, we grew sales in each of our major geographies and improved the overall profitability of our business, validating the strength of our business model and driven by our compelling portfolio of brands.
"We achieved our third consecutive year of double-digit watch sales growth, successfully integrated and positioned our newly-acquired Skagen brand for long-term growth and added key management talent to our global team. We managed our resources tightly and once again generated strong cash flows, allowing us to continue to invest substantial capital in our share repurchase program.”
Kartsotis hinted that the group could be looking to build on a strong year by pushing into new international markets.
He said: "We see many markets around the world with compelling prospects to leverage that advantage and gain market share. We remain positioned to capitalise on our opportunities and deliver sustained and consistent growth, as we grow our watch business and our Fossil and Skagen lifestyle brands around the world."
