Fossil's direct to consumer Q4 sales increased by 20.4%
Q4 2012 worldwide net sales rose $122.7 million, and Skagen brand acquisition generated $43.5 million of net sales in the same quarter.
For the full fiscal year, worldwide net sales increased by 13.5% or $347 million, with sales increasing in each segment. Skagen branded sales contributed $93.8 million to fiscal 2012. Net sales from the North America wholesale segment in the fiscal 2012 fourth quarter increased 15%, or $46 million.
The translation impact of a stronger U.S. dollar decreased the Company’s reported net sales by approximately $5.8 million and $56.7 million during the fourth quarter and full fiscal year, respectively.So, the results are based on constant dollar performance.
Europe wholesale net sales rose 7.6%, or $17.0 million, in the fiscal 2012 fourth quarter compared to the prior fiscal year period. Sales growth was driven by increases in the watch category as well as the addition of the Skagen brand, which generated sales of $19.2 million. Growth was strongest in the United Kingdom and France, while shipments declined in Germany and Italy.
Asia Pacific wholesale net sales rose 18.6%, or $16.1 million, in the fiscal 2012 fourth quarter in comparison to the prior fiscal year fourth quarter, including $4.5 million from the Skagen brand.
Direct to consumer net sales for the fiscal 2012 fourth quarter increased by 20.4%, or $43.6 million, compared to Q4 of the prior fiscal year. The Company’s fourth quarter fiscal 2012 operating profit increased 17.4%, or $30.4 million, compared to the prior fiscal year period, including a negative impact of $13.9 million related to foreign currency translation.
For the full fiscal year, operating profit increased 3.6%, or $16.8 million, compared to the prior fiscal year, including a negative impact of $43.8 million related to foreign currency translation. Full fiscal 2012 operating margin declined 130 basis points to 17.1%, compared to 18.4% a year earlier. ■