Fossil Inc. (FOSL) is set to report first-quarter 2014 results after the market closes on May 13. Last quarter, this global consumer fashion accessories maker and distributor posted a positive surprise of 9.84%. Let’s see how things are shaping up prior to the announcement.
Factors to Consider This Quarter
Strong top-line growth driven by a double-digit increase in global watch sales has been the company’s strength over the years. Product innovation and continued momentum of the Fossil brand also added to growth. The company is also keen on improving its jewelry and leather businesses. We expect the company’s efforts to boost sales in the first quarter.
We are encouraged by the fact that Fossil has a solid watch portfolio and has witnessed strong sales growth owing to its strong global distribution platform and successful innovations. The acquisition of Skagen Designs, Ltd. and its certain subsidiaries in Aug 2012 also contributed to the increase in watch sales.
— Zacks Investment Research