RICHARDSON, Texas – Fossil Group Inc. shares plunged in extended Tuesday after the retailer reported disappointing second-quarter revenue and lowered its outlook for the year.
The watch and accessories maker said its revenue in the most recent quarter fell 4 percent to $740 million, hurt in part by the strong dollar. That fell short of market expectations; analysts were anticipating $751.3 million, according to FactSet.
Fossil earned $54.6 million, or $1.12 per share, for the period. It said the stronger dollar lowered its earnings per share by 30 cents per share. Analysts were expecting 84 cents per share, according to Zacks Investment Research.
Fossil said it expects the strong dollar will continue to weigh on its business, and it now expects to earn between $6.20 and $7 for the year on an adjusted basis, down from an earlier forecast of $7 to $7.60. That's still above analyst forecasts of $5.60 per share, according to FactSet.
Its shares fell 5 percent in extended trading Tuesday following the announcement. Fossil shares have decreased 44 percent since the beginning of the year.
Elements of this story were generated by Automated Insights (http://automatedinsights.com/ap) using data from Zacks Investment Research. Access a Zacks stock report on FOSL at http://www.zacks.com/ap/FOSL
Keywords: Fossil Group, Earnings Report