Written by StockNews.com

Fossil Group Inc. (Nasdaq: FOSL) late Tuesday [Feb 14, 2017 | 4:10pm ] posted mixed fourth quarter earnings results and offered a very weak outlook, sending its shares plunging in aftermarket trading.

The Richardson, TX-based watchmaker reported adjusted Q4 EPS $1.32 per share, $0.11 better than the Wall Street consensus estimate of $1.21. Revenues fell 3.4% from last year to $959.2 million, however, well short of analysts’ $981.28 million view.

Fossil noted that growth in its SKAGEN and FOSSIL brands during the period was offset by a decline in its multi-brand licensed watch portfolio. Declines in traditional watches were largely offset by growth in connected watches (wearables).

Looking ahead, FOSL issued a first quarter outlook that was well below expectations. Fossil sees negative Q1 EPS of ($1.03) to (0.92), while Wall Street is looking for a profit of $0.11. Q1 revenues are seen falling 9.5% to 13% to $574 to $597 million, also badly short of analysts’ $659.18 million estimate.

Fossil’s full-year outlook wasn’t much better, with EPS of ($0.50) to $0.20 not even comparable to Wall Street’s $1.91 consensus view. Revenues are expected to be flat to down 6.5%, or $2.84 to $3.04 billion, also below analysts’ $3.06 billion view.

The company commented via press release:

“We continue to be confident in the strategies we are pursuing and their ability to enable us to improve our financial performance and drive long-term shareholder value. Our success with wearables over the last year clearly shows that our pursuit of the category and expanding our addressable market is a significant long-term opportunity for the company. As we pursue building a more nimble and responsive operating platform through our New World Fossil initiative, we’ll be even better positioned to improve profitability in a very leverageable business model.”

After being halted following the company’s earnings release, Fossil Group shares fell $3.08 (-13.47%) to $19.79 in after-hours trading Tuesday. Prior to today’s report, FOSL had declined -11.56% year-to-date, versus a +4.55% rise in the benchmark S&P 500 index during the same period.

FOSL currently has a StockNews.com POWR Rating of D (Sell), and is ranked #51 of 67 stocks in the Fashion & Luxury category.