Fossil Inc was one of the top performing stocks on Tuesday after the watchmaker reported second quarter earnings that handily beat Wall Street projections. The stock gained an impressive 31.5 percent in Tuesday trading, making it the top gainer on the S&P 500. The company saw higher sales in all regions it operates during the quarter that ended June 30th, and its forecast for third quarter and full year sales growth was also well above analyst expectations.
In the three months ended June 30th, Fossil's posted earnings of $57.3 million, or 92 cents a share, up more than 11 percent from its 2Q 2011 earnings of $51.4 million, or 80 cents a share. Exclusing certain one time charges, the profit was 93 cents a share, beating by 15 cents the consensus estimate from economists in a recent Bloomberg survey. The results brought renewed enthusiasm for Fossil, whose shares had slipped about 40 percent since it last reported quarterly results in May.
Based in Richardson, Texas, Fossil also offered an upbeat forecast, and is now expecting adjusted earnings for 2012 in a range of $5.29 to $5.34 a share, exceeding the forecast projection of $5.28 a share made by the Bloomberg analysts. The company enjoyed particularly strong revenue growth last quarter in its wholesale business, which saw sales increase nearly 14 percent to $480 million. That grwoth was driven by a 17 percent in gain in Fossil's North American wholesale business which surged to $250 million last quarter.