Fossil Drops After Quarterly Sales Trail Estimates: Dallas Mover

Fossil Inc. (FOSL), the maker of the namesake watch brand, fell the most in almost six months after reporting sales that trailed analysts’ estimates.

Fossil slumped 10 percent to $84.24 at the close in New York, the biggest decline since May 8. The shares have advanced 6.1 percent this year.

Third-quarter sales rose 6.4 percent to $684.2 million, the Richardson, Texas-based company said today in a statement. Analysts projected $713.5 million, the average of estimates compiled by Bloomberg. Fossil also lowered its fourth-quarter sales forecast by about 4 percentage points, to a 12 percent increase, because of slowing European growth. Analysts anticipated a 16 percent gain.

Net income in the third quarter rose 10 percent to $76.8 million, or $1.26 a share, from $69.6 million, or $1.09, a year earlier, Fossil said today.

To contact the reporter on this story: Lauren Coleman-Lochner in New York at llochner@bloomberg.net

To contact the editor responsible for this story: Robin Ajello at rajello@bloomberg.net

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