Fossil Group Inc. rose as much as 18 percent in late trading after the watchmaker’s fourth-quarter sales topped analysts’ estimates, helped by new brands and investments in its digital operations.
While revenue in the quarter through Jan. 2 fell 6.8 percent to $992.5 million, that handily beat analysts’ $928.2 million average projection. Profit was $1.46 a share, the Richardson, Texas-based company said Tuesday in a statement. Analysts estimated $1.30, on average.
Chief Executive Officer Kosta Kartsotis said the addition of the Kate Spade New York and Chaps brands have helped Fossil’s licensed business, while investments in its namesake and Skagen lines also boosted results. The company has introduced a new website, as well, helping drive double-digit growth in its e-commerce channel.
The shares climbed as high as $40.70 in late trading in New York. Fossil had slid 5.7 percent this year through the close of regular trading Tuesday.