Richardson, TX—Fossil Group Inc. saw its shares fall in trading earlier today after the watch and accessories company reported late Tuesday a fourth quarter earning miss and a lower-than-expected outlook.
Fourth quarter net income rose about 4% to $154.1 million, or $3 a share. That was up from $148.5 million, or $2.68 a share, a year earlier. But it missed analysts’ estimate for earnings of $3.10 a share.
Collab with Kate Spade
Net revenue was $1.06 billion, flat with year-ago but also fell short of forecasts expecting $1.12 billion in sales.
For the year, Fossil reported profit of $376.7 million, or $7.10 a share. Revenue was reported as $3.51 billion.
By category, Fossil’s watches had a 1% sales decline in the quarter, but still accounted for more than 75% of total revenue. Jewelry sales increased 13%, but still only accounted for $93 million of $1.12 billion in revenue.
“We are not entirely satisfied with our fourth quarter performance and begin 2015 intensely focused on taking advantage of the many opportunities available to us to drive future growth,” said CEO Kosta Kartsotis.
Fossil forecast for its current quarter per share earnings to range from 59 cents to 69 cents. Analysts forecast adjusted earnings per share of $1.25.
The company expects full-year earnings in the range of $5.45 to $6.05 a share.
Fossil also announced a global licensing agreement for the design, development and distribution of kate spade new york watches through 2025. Fossil said it would launch the first watches developed in collaboration with Kate Spade in 2016.