US watchmaker and retailer Fossil’s share price jumped in after-hours trading despite the company reporting some rocky revenue figures.
Worldwide net sales during the three months to 2 July were down seven per cent to $54.6m (£42m).
Fossil said the fall was driven by a “decline in the company’s multi-brand licenced watch portfolio and the negative impact of changes in foreign currency”.
Watch sales fell 10 per cent, while leathers grew four per cent and jewellery was up two per cent.
Net income for the quarter came in at $6m, down from $54.6m a year ago, while diluted earnings per share were $0.12, down from $1.12.
Why it's interesting
Fossil’s chief executive Kosta Kartsotis said that the results, “while below last year, were very much in line with our expectations from both a top and bottom line perspective”.
He noted that several areas of the business performed well but were dragged down overall by “continued weakness in the traditional watch category”.
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Investors seemed to be pleased enough with the results. Shares jumped two per cent in after-hours trading to $30.90.
What the company said
We believe that growth in Fossil and Skagen, strong performance from leathers and progress in wearables are solid indicators that we are on the right track, have the right long-term strategies in place and their performance reinforces our commitment to investing in these strategies to drive future growth.