Fossil Watches Sales Rise

Fossil Inc. (Richardson, Texas) announced a 22 percent increase in net sales for its fourth quarter 2003 ending Jan. 3, 2004.

Net income increased 24.7 percent for the designer of branded watches.

For the fiscal year 2003, net sales rose 17.8 percent and net income jumped 16 percent.

Company-owned retail store sales increased 26.6 percent as a result of a 13.6 percent increase in the average number of stores opened during the quarter and a same-store sales gain of 14.9 percent. The quarter represented the third consecutive three-month period of double-digit same-store sales increases.

“Fiscal 2003 marked a period of significant accomplishments for our company,” said senior vp, cfo Mike Kovar. “Financially, we reported a record year with many of our businesses and brands reporting double-digit sales gains. . . . Operationally, we consolidated North American distribution into a new warehouse in Dallas, opened a new distribution center in Germany and transitioned onto a new systems platform for our domestic operations.”

Worldwide net sales rose 22 percent during the fourth quarter, with particular strength in Fossil, Diesel, Emporio Armani and DKNY watches, company-owned stores and Fossil jewelry. Fourth quarter domestic sales rose by 11.9 percent, with Fossil brand watch sales increasing by 19.7 percent. This increase was partially offset by the discontinuance of the Eddie Bauer private label watch product line and a decline in sales of Relic watches. Domestic sales of accessories and sunglasses rose 2.2 percent, with particular strength in Fossil eyewear and Emporio Armani jewelry.