Difficult second quarter at Fossil
12/08/2009
Sales for the quarter ended July 4 totalled $315.9 million, down 10.6% year-on-year compared with $353.2 million during the second quarter of 2008. Gross profit fell 12.1% to $167.2 million, accounting for 52.9% of net sales, compared with $190.3 million, and 53.9% of net sales, during the same period last year. Net income fell 33.9% to $16.6 million compared with $25.1 million.
For the six months to July 4, net sales fell 9.9% to $638.9 million compared with $709.4 million in the prior-year period. Gross profit decreased 12.5% to $336.6 million, or 52.7% of net sales, compared with $384.6 million, or 54.2% of net sales in the 2008 period. Net income was down 38.8% to $33.9 million compared with $55.4 million.
Mike Kovar, executive vice president and chief financial officer, said: "We are encouraged by the favourable reaction to new product introductions and the upcoming innovation we will deliver to our wholesale partners ahead of the holiday season. Although the direction of the global economy remains uncertain, we believe that these offerings combined with continued focus on profitable market share growth and strong cost and inventory discipline will enable us to deliver a solid performance for the remainder of the year."
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