Watch What’s Happening With $FOSL
Shares of accessory and watch designer Fossil are climbing after earnings impressed Tuesday night. The company beat on profits and revenues, reporting $2.68 EPS on $1.06 Billion in fourth quarter sales. Wall Street had expected 24 cents less in profits per share on 20 million fewer revenues.
Margin expansion helped push up profits. Margins increased by 10 basis points to 17.2% last year.
Feb. 12 at 10:31 AM
The results had long investors celebrating a short-squeeze. Last year, $FOSL was among the top 100 companies shorted on the Nasdaq. This morning, the stock had about 7% short interest, as a percent of float, according to data provided by Nasdaq. It has since declined, according to ShortSqueeze.com.
Feb. 12 at 10:56 AM
Feb. 12 at 9:46 AM
Shorts’ argument is that the standard watch is a relic. Folks check the time on omnipresent smartphones. If watches do become more popular, some non-$FOSL believers argue, it will be thanks to wearable technology that melds the accessory with the smartphone, such as the Pebble Steel or Samsung’s Galaxy Gear. Apple might even be getting into the “wearables” game, if blog chatter is to be believed.
Feb. 11 at 4:28 PM
But $FOSL’s performance shows watch demand is growing, at least for the company. Net sales of watches increased 14% in the quarter. Jeffries put a $150 price target on the stock this morning, according to the Analyst Ratings Network. The stock currently trades around $123 per share.
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