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Fossil Group: Stronger U.S. dollar negatively impacted net sales

Staff Writer |
Fossil Group reported its financial results for the fourth quarter and fiscal year ended December 31, 2016.

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In the fourth quarter of fiscal 2016, the stronger U.S. dollar negatively impacted net sales by $18.3 million.

Fourth quarter fiscal 2016 net sales decreased 3% (2% on a constant currency basis) as compared to the fourth quarter of fiscal 2015.

For fiscal year 2016, the impact from the strong U.S. dollar negatively impacted net sales by $45.4 million.

Fiscal year 2016 net sales decreased 6% (4% on a constant currency basis) as compared to fiscal 2015.

The Company reported net income for the fourth quarter of fiscal 2016 of $49.7 million compared to $70.4 million for the fourth quarter of fiscal 2015.

Diluted earnings per share were $1.03, compared to $1.46 for the fourth quarter of fiscal 2015

Diluted earnings per share for the fourth quarter of fiscal 2016 of $1.03 included a restructuring charge of $0.21 per diluted share, purchase accounting costs associated with Misfit, Inc. of $0.08 per diluted share and negative impact from currency of $0.04 per diluted share.

Currencies, including both the translation impact on operating earnings and the impact of foreign currency hedging contracts, negatively affected the year-over-year EPS comparison by $0.22.

For fiscal year 2016, the Company reported net income of $78.9 million compared to $220.6 million for fiscal 2015.

Diluted earnings per share were $1.63, compared to $4.51 for fiscal 2015. Diluted earnings per share for fiscal 2016 of $1.63 included a restructuring charge of $0.43 per diluted share, purchase accounting costs associated with Misfit, Inc. of $0.37 per diluted share, negative impact from currency of $0.17 per diluted share and the benefit of real estate transactions of $0.16 per diluted share.

Currencies, including both the translation impact on operating earnings and the impact of foreign currency hedging contracts, negatively affected the year-over-year EPS comparison by $0.87.


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