Fossil Group (NASDAQ: FOSL), the American fashion designer and manufacturer, reported positive Q3 results after the market closed on Wednesday – sending the stock soaring in Thursday premarket trading with gains of around 33%. For Fossil Group, this is not the first time that analyst expectations haven’t done the company full justice. The company’s Q320 report sent stock soaring at the same time last year.
Fossil reported a worldwide net sales of $492M, an increase of 13% and illustrative of global growth. Again, net sales attributable to digital channels grew 28% from last year and represented 40% of worldwide net sales.
Also Read: The Best Clothing Stocks to Buy
Operating income increased to $48M from $18M last year, with total liquidity of £305M. Off the back of a strong quarter, Fossil are raising their outlook for worldwide net sales growth to between 17% and 19%, and an increased full-year adjusted EBITDA margin around 9%. With sales expected to increase in the next quarter of 2022 – it’s no wonder stock surged over 30% this morning.
Kosta Kartsotis, CEO and Chairman of Fossil Group, announced:
“We are pleased to report another quarter of strong financial performance…Top-line growth, solid gross margins, and ongoing expense management drove adjusted operating margins of 11% in the third quarter. A continuing focus on our four strategic priorities is fueling broad-based sales growth, led by digital channels. We are proud of our teams for their hard work and dedication that has translated to strong top-line performance, while also delivering sharp execution on inventory management and expense control fundamentals.”
FOSL stock has been trading relatively sideways for the most part of 2021, yet a spike early in the year has maintained an annual gain of 59%. With price at $18.17 premarket, FOSL is showing a daily gain of just over 31%.
Should You Invest in Fossil Group Shares?
One of the most frequently asked questions we receive is, “what stocks are best to buy right now?” It's a wide-ranging question, but one that we have answered… Our AskTraders stock analysts regularly review the market and compile a list of which companies you should be adding to your portfolio, including short and longer-term positions. Here are the best stocks to buy right now
