Higher sales at Fossil
US-based luxury leathergoods producer Fossil has reported higher sales for the fourth quarter ended January 2, 2010.
Fourth-quarter net sales increased 13.7% to $527.8 million compared with $464.1 million, with shipments of accessories up 5.7%, primarily due to increased shipments of Fossil women's handbags. Gross profit rose 22.8% to $297.6 million, or 56.4% of net sales, compared with $242.4 million, or 52.2% of net sales, during the fourth quarter of 2008. Net income increased 51.2% to $70 million compared with $46.3 million.
Net sales for the full year fell 2.2% to $1.55 billion compared with $1.58 billion, while gross profit fell 0.7% to $844.9 million, or 54.6% of net sales, compared with $851.2 million, or 53.8% of net sales, during the prior-year period. However, net income increased 0.8% to $139.2 million compared with $138.1 million.
Mike Kovar, executive vice president and chief financial officer, said: "While we will maintain our conservative posture given the challenges of difficult global economies, we expect to continue our positive sales momentum into fiscal 2010.”
