RICHARDSON (AP) – Fossil Inc. said Tuesday that its first-quarter earnings surged 55 percent on 37 percent revenue growth led by its performance in Asia.
The results from the apparel and accessories retailer beat Wall Street forecasts, and Fossil shares climbed $11.79, or 12.5 percent, to $105.79 in morning trading.
The retailer reported net income of $55.8 million, or 86 cents per share, for the quarter that ended April 2, compared with $35.9 million, or 53 cents per share, in the first quarter of 2010.
Revenue jumped to nearly $537 million from $393.2 million a year earlier.
The company attributed its results to strong broad based growth, led by a 57 percent jump in revenue in Asia. Revenue in North America and Europe each grew by 34 percent. Online sales rose 27 percent.
Analysts surveyed by FactSet expected earnings of 66 cents a share on revenue of $513.8 million.
For the second quarter of fiscal 2011, the company expects to earn between 70 and 73 cents per share. It’s predicting the impact of a higher tax rate to hit earnings by about 26 cents per share. It sees revenue growth from the same quarter last year of between 28 and 30 percent. Analysts expected earnings of 76 cents a share.
It’s forecasting full year earnings of $4.44 to $4.54 per share on revenue growth of between 21 and 23 percent. That’s up from its previous prediction of $4.22 to $4.32 per share, with revenue up 19 percent to 21 percent. It reported full-year earnings of $3.77 per share last year. Analysts expected earnings of $4.35 a share for this year.
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