Blog

Fossil's Sales Reach Record Levels

August 15, 2011

During a week of that was one of the most volatile in the history of Wall Street, Richardson, Texas based Fossil (FOSL) released their financial earnings for the 2nd quarter; the results were record setting and beat analyst's expectations. Here's an overview of their strong performance:

Second Quarter (2011 vs 2010)
- Net sales increased by 34.9% to Record Level of $556.7 million compared to $412.6 million;
- Gross profit rose 31.7% to $312 million, compared to $236.9 million;
- Operating income increased by 34.1% to Record Level of $86.3 million, compared to $64.3 million;
- Global comp sales increased 22%

Six Month Period Results (2011 vs 2010)
- Net sales increased by 35.7% to $1.09 billion compared to $0.81 billion;
- Gross Profit increased by 34.5% to $613.8 million, compared to $456.3 million;
- Operating Income increased by 54.7% to $178.8 million, compared to $115.6 million;

Looking forward to the 3rd and 4th quarters of 2011, Fossil expects net sales to increase in a range of 22%-24%

In regard to Canada, last month, Fossil opened their 1st store location in the nation's capital, at Ottawa's Rideau Centre, the country's #5 ranked mall in terms of sales per square foot. Furthermore, in June, Fossil opened at Carrefour Laval, the top performing mall in the province of Quebec. We expect to announce shortly Fossil's next 2011 store opening. Stay tuned for additional updates.
 
For 2102, Fossil is prepared to open approximately 6 Canadian locations, and are targeting super-regional malls and high pedestrian street-front locations. Size required is 1500 sq.ft (with minimum of 23.5 ft storefront).

In addition to the above, Fossil is also seeking to open a couple of Fossil Outlet stores in Ontario or Quebec in 2011. Size required is 3000-6000 sq.ft.

Finally, Fossil is also now prepared to open the first Watch Station store in Canada, which specializes in the sale of all licensed brand watches (Michele, Burberry, DKNY, Armani...etc). 

Fossil operates 360 corporate stores in 15+ countries.

For more information on Fossil, please visit their website at www.fossil.com.