Fossil Reports Record Fourth Quarter and Full Year 2012 Results
Fossil Inc., the parent company of Fossil Corporate Markets based in Richardson, Texas, reported its financial results for the fourth quarter and fiscal year ended December 29, 2012. The company reported that net sales for both the quarter and the year grew, with record earnings of $151.1 million for the fourth quarter of 2012.
The company saw increased sales in all segments, particularly in the Fossil's wholesale segments. North American wholesale increased 15 percent for the quarter to $354.7 million and 11 percent for the year, at $1.08 billion. Total fourth quarter sales were $947.7, a 12 percent increase over the same period in 2011, and net sales for the year were up 10 percent at $2.86 billion.
"We are pleased to report strong fourth quarter sales and earnings, concluding another record year of growth and significant progress toward our long-term goals," stated Kosta Kartsotis, chief executive officer. "During the quarter, we grew sales in each of our major geographies and improved the overall profitability of our business, validating the strength of our business model and driven by our compelling portfolio of brands."
The company attributed much of its increase to the acquisition of SKAGEN, which was completed in April 2012. The SKAGEN brand acquisition generated $43.5 million of net sales in the fourth quarter. For the full fiscal year, worldwide net sales increased by 13.5 percent or $347.0 million, with sales increasing in each segment. SKAGEN branded sales contributed $93.8 million to fiscal 2012.
"Last year's accomplishments position us well for the future," Kartsotis said. "Our global distribution and supply chain, our design and management talent and our dynamic portfolio of brands afford us a significant competitive advantage. We see many markets around the world with compelling prospects to leverage that advantage and gain market share. We remain positioned to capitalize on our opportunities and deliver sustained and consistent growth, as we grow our watch business and our FOSSIL and SKAGEN lifestyle brands around the world."
"We will continue to invest in our infrastructure and build a world-class management team, dedicated to enhancing productivity and profitability. Above all, our goal is to build a diversified, scalable and predictable business model that generates solid cash flows and delivers outstanding returns for our shareholders," Kartsotis said.
The full release is available on Fossil's website.