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Macy’s FY16 earnings exceed outlook but sales drop 4.8 percent

Macy's has said that its full year 2016, adjusted earnings were 3.11 dollars per diluted share, which exceeds the company's most recent guidance of 2.95 dollars to 3.10 dollars on the same basis. Sales in fiscal 2016 totalled 25.778 billion dollars, down 4.8 percent from total sales of 27.079 billion dollars in fiscal 2015.

"While 2016 was not the year we expected, we made significant progress on key initiatives that are starting to bear fruit. Looking at the continued challenges in the retail environment and changing consumer shopping behaviors, we know we must evolve our strategy and execute faster. Additional initiatives that we believe will improve sales trends in 2017 include continued omnichannel improvements, an updated marketing strategy and a simplified pricing structure," said Terry J. Lundgren, Macy's chairman and chief executive officer in a media release.

Review of the fourth quarter and FY16 results

Sales in the fourth quarter of 2016 totaled 8.515 billion dollars, down 4 percent from total sales of 8.869 billion dollars in the fourth quarter of 2015. On an owned basis, comparable sales declined by 2.7 percent. Comparable sales on an owned plus licensed basis were down 2.1 percent.

Fiscal 2016 comparable sales on an owned basis declined by 3.5 percent and on an owned plus licensed basis, comparable sales declined by 2.9 percent.

In fiscal 2016, as previously announced by the company, Macy’s opened 27 stores and closed 66 stores. The company plans to close an additional approximately 34 stores over the next few years for a total of approximately 100 stores. New stores opened in fiscal 2016 included one Macy's store in Kapolei, HI, 24 Bluemercury freestanding stores, one Macy's Backstage freestanding store in San Antonio, TX, and one Bloomingdale's Outlet in Orange, CA.

Fourth quarter earnings per diluted share were 1.54 dollars. Excluding impairments, store closing, settlement charges and other costs of 247 million dollars (147 million dollars after tax or 48 cents per diluted share), Macy’s said, earnings per diluted share on an adjusted basis were 2.02 dollars for the fourth quarter of 2016. In 2015, fourth quarter earnings per diluted share were 1.73 dollars.

Jeff Gennette ro assume CEO’s role in March

The company also said that its previously announced CEO transition will occur on March 23, 2017. As noted in the company's June 23, 2016, announcement, Jeff Gennette, President of Macy's will assume the CEO role and Terry Lundgren will continue as executive chairman of the company.

In fiscal 2017, the company expects comparable sales on an owned basis to decline between 2.2 percent and 3.3 percent, with comparable sales on an owned plus licensed basis to decline between 2.0 percent and 3.0 percent. Total sales are expected to be down between 3.2 percent and 4.3 percent in fiscal 2017, reflecting the 66 stores closed in 2016.

Adjusted diluted earnings per share of between 3.37 dollars and 3.62 dollars are expected in 2017, excluding the impact of the anticipated settlement charges related to the company's defined benefit plans. Excluding the impact of the anticipated fourth quarter gain on the sale of the Union Square Men's building in San Francisco and the anticipated settlement charges related to the company's defined benefit plans, the company said, adjusted diluted earnings per share of 2.90 dollars to 3.15 dollars are expected in 2017.

Picture:Facebook/Macy's

Dillard’s posts decline in FY16 profit and net sales

Dillard's reported net income for the 52 weeks ended January 28, 2017 of 169.2 million dollars or 4.93 dollars per share, compared to net income of 269.4 million dollars or 6.91 dollars per share, for the prior year 52-week period. Net sales for the year were 6.257 billion dollars against 6.596 billion dollars last year.

Commenting on the company’s full year trading, Dillard's Chief Executive Officer, William T. Dillard, II, stated in a statement, "Our operating results reflect another quarter of mall traffic declines from continued retail industry challenges. In response, we are ramping up our efforts to bring more distinctive brand and service experiences to Dillard's, both in-store and online. Our strong balance sheet provides us support in these challenging times, and during the year we returned 256 million dollars to shareholders."

Full year and fourth quarter highlights

The company said, total merchandise sales (which exclude CDI) decreased 5 percent, while sales in comparable stores for the period also decreased 5 percent.

For the fourth quarter, Dillard's net income was 56.9 million dollars, or 1.72 dollars per share, compared to net income of 84 million dollars or 2.31 dollars per share, for the prior year fourth quarter.

Net sales for the quarter were 1.936 billion dollars compared to 2.074 billion dollars for the 13 weeks ended January 30, 2016. Total merchandise sales (which exclude CDI) for the period were 1.896 billion dollars against 2.021 billion dollars for the 13-week period ended January 30, 2016, which represented a decrease of 6 percent. Sales in comparable stores also decreased 6 percent.

The company said, although all sales categories declined during the quarter, better performing categories relative to the total trend were ladies' apparel and men's apparel and accessories. Weakest performing categories were home and furniture and shoes. Sales were strongest in the eastern region followed by the western and central regions, respectively.

At January 28, 2017, the company operated 268 Dillard's locations and 25 clearance centers spanning 29 states and an Internet store at Dillards.com.

Picture:Dillard's

Reiss names Christos Angelides as Chief Executive Officer

Fashion and accessories brand Reiss has appointed Christos Angelides as Chief Executive Officer. The company said, Angelides’s appointment is a part of the company's planned succession process. In addition, the company also said that Andy Lawrence has joined the company as Head of International.

"I am delighted that Christos has agreed to lead Reiss going forward and look forward to working closely with him in order to ensure an orderly succession. He brings significant retail experience which will be invaluable as Reiss grows into a truly global fashion brand," said David Reiss, Founder and Chairman of Reiss in a statement.

Christos Angelides takes over as Reiss CEO

Angelides brings over 30 years multi-channel retail experience to Reiss including 28 years at Next where he served for 14 years on the main board as group product director. Most recently he served as president of Abercrombie and Fitch based in the US.

Commenting on his new role at Reiss, Angelides said in the company announcement, "I have long admired the strength of the Reiss brand and its emphasis on timeless luxury at an affordable price. I look forward to building on the strong foundations that David has built and expanding the business further in both the UK and internationally together with the support of Warburg Pincus."

Lawrence joins Reiss from Ralph Lauren where he held a series of senior roles in Asia Pacific including head of Korea and Taiwan and senior director of business development for the region.

The two appointments follow strong trading in the six week period to January 7, 2017. The company founded by David Reiss in 1971, operates from over 189 locations in 17 countries and also has an e-commerce presence. In the year to January 2016, the company generated sales of 146 million pounds (181 million dollars) and EBITDA of 24.4 million pounds (30.4 million dollars).

Picture:Reiss

VF Corporation reports flat revenue growth in FY16

VF Corporation said, revenue for the fourth quarter and full year was in line with last year. Fourth quarter of 3.3 billion dollars was up 1 percent currency neutral and full year revenue of 12 billion dollars, also up 1 percent currency neutral driven by continued momentum in our international and direct-to-consumer platforms, and Vans business.

“VF’s global business model, diverse brand portfolio and focused operational discipline helped the company deliver solid results in 2016 despite an inconsistent US marketplace,” said Eric Wiseman, Executive Chairman of the Board in a statement, adding, “We’re pleased with the improved quality of our revenue, which reflects continued growth in our international and direct-to-consumer platforms, and our strong gross margin and cash generation performance that enabled us to return a record 1.6 billion dollars to our shareholders.”

Financial highlights of the fourth quarter and FY16

Gross margin improved 90 basis points to a 49.1 percent on a reported basis, as the company said, benefits from pricing, lower product costs and a mix-shift toward higher margin businesses were partially offset by changes in foreign currency and the impact of restructuring charges. On an adjusted basis, gross margin increased 160 basis points to 49.8 percent. Changes in foreign currency negatively affected both reported and adjusted gross margin by 90 basis points during the quarter.

Earnings per share on a reported basis was down 33 percent to 0.63 dollar compared to 0.94 dollar during the same period last year. Adjusted earnings per share increased 3 percent to 0.97 dollar and excluding the impact of changes in foreign currency, adjusted earnings per share was up 8 percent.

Gross margin for the year, improved 20 basis points to 48.4 percent on a reported basis as benefits from pricing, lower product costs, and a mix-shift toward higher margin businesses were partially offset by changes in foreign currency and the impact of restructuring charges. On an adjusted basis, gross margin increased 40 basis points to 48.6 percent. The company said, changes in foreign currency negatively affected both reported and adjusted gross margin by almost 80 basis points in 2016.

Earnings per share on a reported basis was down 9 percent to 2.78 dollars compared to 3.04 dollars in 2015. Adjusted earnings per share for 2016 increased 2 percent to 3.11 dollars and excluding the impact of changes in foreign currency, adjusted 2016 earnings per share was up 7 percent.

Segment-wise financial highlights

Fourth quarter revenue for outdoor & action sports was up 2 percent to 2.1 billion dollars, while the segment’s revenue also increased 2 percent in 2016 to 7.5 billion dollars. Vans brand revenue for the fourth quarter was up 14 percent (up 15 percent currency neutral) driven by a mid-teen increase in the Americas business (up high-teens currency neutral); and in Europe a return to growth with a mid-single-digit rate increase (up low single-digits currency neutral); and more than 20 percent (up more than 25 percent currency neutral) growth in Asia Pacific. Revenue for the Vans brand for the full year was up 6 percent (up 7 percent currency neutral) and reached 2.3 billion dollars.

Fourth quarter revenue for The North Face brand was down 8 percent (down 7 percent currency neutral), which the company said were driven by the strategic decision to reduce sales to the off-price channel and the impact of bankruptcies in North America. Excluding these factors, The North Face brand would have increased at a low single-digit rate. On a regional basis, the Americas declined at a low double-digit rate; Europe increased at a mid-teen rate (up high-teens currency neutral); and, Asia Pacific declined at a low double-digit percentage rate (down mid-single-digit currency neutral). For the full year, revenue for The North Face brand declined 2 percent (down 1 percent currency neutral) to 2.3 billion dollars.

Timberland brand revenue was up 4 percent in the fourth quarter (up 5 percent currency neutral) including a low single-digit rate increase in the Americas region; a high single-digit rate increase in Europe (up low double-digits currency neutral); and, a mid-single-digit rate increase in Asia Pacific. Full year Timberland brand revenue was up 1 percent to 1.8 billion dollars.

Jeanswear fourth quarter revenue declined 5 percent (down 4 percent currency neutral) to 697 million dollars, while full year, global jeanswear revenue was down 2 percent to 2.7 billion dollars (flat currency neutral). Wrangler brand revenue was down 1 percent (up 1 percent currency neutral) in the fourth quarter with revenue in line with last year in the Americas business (up low single-digit currency neutral); a high single-digit rate decrease in Europe (down mid-single digits currency neutral); and, a 20 percent decline in the Asia Pacific region (down high-teens currency neutral). Full year revenue for the Wrangler brand was down 1 percent (up 1 percent currency neutral) to 1.7 billion dollars.

Fourth quarter revenue for the Lee brand was down 13 percent (down 11 percent currency neutral) including a high-teens rate decline in the Americas region; a high single-digit rate increase in Europe (up low double-digits currency neutral); and, a mid-single digit rate decline in the Asia Pacific region (down low single-digit currency neutral). For the full year, revenue for the Lee brand was down 3 percent (down 1 percent currency neutral) to 1 billion dollars.

Imagewear fourth quarter revenue increased 15 percent to 298 million dollars with a more than 20 percent increase in the Licensed Sports Group (LSG) business and a mid-single-digit increase in the workwear business. For the full year, revenue for imagewear was up 2 percent to 1.1 billion dollars.

Sportswear fourth quarter revenue declined 17 percent to 162 million dollars including a 20 percent decrease in Nautica brand revenue and a 2 percent decline in the Kipling brand’s North American business compared to the same period last year. For the full year, Sportswear coalition revenue was down 16 percent to 536 million dollars.

International segment sales up 5 percent in Q4 and 4 percent in FY

International revenue in the fourth quarter was up 5 percent (up 7 percent currency neutral). Revenue was up 6 percent (up 7 percent currency neutral) in Europe and up 6 percent (up 8 percent currency neutral) in the Asia Pacific region, including a 6 percent increase (up 14 percent currency neutral) in China. Revenue in the Americas (non-U.S.) region was down 1 percent (up 6 percent currency neutral). The international business represented 34 percent of total VF fourth quarter sales, compared to 33 percent in last year’s same period.

For the full year, international revenue was up 4 percent (up 6 percent currency neutral). Revenue was up 5 percent (up 4 percent currency neutral) in Europe and up 3 percent (up 6 percent currency neutral) in the Asia Pacific region, including a 4 percent increase (up 10 percent currency neutral) in China. Revenue in the Americas (non-US) region was up 2 percent (up 11 percent currency neutral). The international business represented 38 percent of total VF sales in 2016, compared to 37 percent in 2015.

Direct-to-consumer revenue was up 11 percent (up 12 percent currency neutral) in the fourth quarter driven by a mid-teen increase in the outdoor & action sports business and a mid-teen increase in the international business. The company’s e-commerce business continued its strong momentum with 21 percent revenue growth during the quarter. There were 1,507 VF-owned retail stores at the end of the quarter compared with 1,405 at the end of the fourth quarter of 2015.

For the year, direct-to-consumer revenue was up 8 percent (up 9 percent currency neutral) driven by a low-teen increase in the outdoor & action sports business and a low double-digit (mid-teen currency neutral) increase in the international business. Direct-to-consumer revenue was 28 percent of total VF revenue in 2016 compared to 26 percent in 2015.

Revenues in 2017 expected to rise low-single-digit

For the fiscal year 2017, revenue is expected to increase at a low single-digit percentage rate including about a two percentage point negative impact from changes in foreign currency. By coalition, revenue for outdoor & action sports is expected to increase at a low single-digit percentage rate (up at a mid-single-digit rate currency neutral); revenue for Jeanswear is expected to approximate 2016 levels; imagewear revenue is expected to increase at a low single-digit percentage rate; and sportswear is expected to decline at a high single-digit percentage rate.

International revenue is expected to grow at a low single-digit percentage rate (accelerating to a high single-digit percentage rate on a currency neutral basis). By geographic region, European revenue is expected to increase at a low single-digit percentage rate (up at a high single-digit rate on a currency neutral basis). In the Asia Pacific region, revenue is expected to increase at a mid-single-digit percentage rate (up at a high single-digit rate on a currency neutral basis). And, in the Americas (non-US) region, revenue is expected to increase at a high single-digit percentage rate (up at a low-teen rate currency neutral).

Direct-to-consumer revenue is expected to grow at a high single-digit percentage rate. Direct-to-consumer growth in 2017 includes the addition of about 50 stores and mid-single-digit comparable sales growth, including an expected increase of approximately 25 percent in e-commerce revenue. Earnings per share are expected to be down at a low single-digit percentage rate compared to 2016 adjusted EPS of 3.11 dollars (up at a mid-single-digit percentage rate on a currency neutral basis).

In the first half of 2017, the company expects revenue on a reported basis to decline at a low single-digit percentage rate (about flat on a currency neutral basis). VF expects earnings per share to decline at a mid-single-digit percentage rate on a reported basis (up at a low single-digit rate on a currency neutral basis). Revenue on a reported basis is expected to increase at a low single-digit percentage rate (up at a mid-single-digit rate on a currency neutral basis). Earnings per share are expected to increase at a low single-digit percentage rate on a reported basis (up at a high single-digit rate on a currency neutral basis).

VF’s Board of Directors declared a quarterly dividend of 0.42 dollar per share, payable on March 20, 2017 to shareholders of record on March 10, 2017.

Picture:Vans

Björn Borg FY16 net sales rise 10 percent

For the period from October 1 to December 31, 2016, Björn Borg Group’s net sales increased by 12.3 percent to 171.4 million Swedish krona (19.3 million dollars). Excluding currency effects, the company said, sales rose by 10.2 percent. For the full year, net sales increased by 10 percent to 631.6 million Swedish krona (71.3 million dollars).

“We finished the year very strongly, and two years and four months after the launch of our business plan, Northern Star, we closed the books on another year in which we improved our key indicators,” said the company’s CEO Henrik Bunge in a media statement.

Björn Borg also posts rise in Q4 and FY earnings

The company said, gross profit margin for the quarter was 48 percent and excluding currency effects, the margin was 49.9 percent. Operating profit amounted to 21.4 million Swedish krona (2.4 million dollars) compared to 14.6 million (1.6 million dollars) in the same quarter last year and profit after tax was 17.9 million Swedish krona (2.02 million dollars) against 7.3 million (0.8 million dollars). Earnings per share before and after dilution amounted to 0.74 Swedish krona (0.08 dollar) compared to 0.34 (0.04 dollar) last year’s quarter.

The gross profit margin for the full year was 50.3 percent and excluding currency effects, the margin was 50.7 percent. Operating profit amounted to 64.2 million Swedish krona (7.25 million dollars) against 58.6 million (6.6 million dollars) in 2015. Profit after tax amounted to 46.9 million Swedish krona (5.3 million dollars) compared to 41.6 million (4.7 million dollars) last year and earnings per share before and after dilution amounted to 1.88 Swedish krona (0.2 dollar) against 1.79 (0.20 dollar) last year.

The company also said that the Board of Directors has decided to propose to the Annual General Meeting a dividend distribution of 2 Swedish krona (0.23 dollar) per share, totaling 50.3 million Swedish krona (5.6 million dollars).

Picture:Björn Borg

Kate Spade posts 13.7 percent increase in FY16 net sales

Kate Spade & Company’s net sales for the full year were 1.381 billion dollars, an increase of 139 million dollars or 11.2 percent, compared to the full year 2015. Net sales increased 166 million dollars or 13.7 percent, excluding sales for wind-down operations for the full year 2015. Adjusted EBITDA was 261 million dollars compared to adjusted EBITDA, excluding wind-down operations of 203 million dollars for the full year 2015. The company also said that it is in the process of reviewing strategic alternatives to enhance shareholder value.

"Our solid fourth quarter and fiscal year performance demonstrate the strength of our differentiated business model, as we continued to gain market share and deliver strong growth despite a challenging retail environment. In 2016, we thoughtfully expanded our global store base, opening 52 net new owned and partner-operated stores," said Craig A. Leavitt, Chief Executive Officer of Kate Spade & Company in a press release.

Full year earnings rise to 1.17 dollars

For the full year 2016 on a GAAP basis, the company recorded income from continuing operations of 152 million dollars or 1.17 dollars per diluted share, compared to income from continuing operations for 2015 of 22 million dollars or 0.17 dollar per diluted share. Diluted earnings per share were 0.70 dollar compared to adjusted diluted earnings of 0.48 dollar for the full year 2015.

"We are pleased to report top-line growth of 14 percent for the full-year. In 2016, we delivered Adjusted EBITDA margin expansion of 220 basis points compared to the prior year, reflecting our ongoing focus on expense management, as well as the benefit of lower annual incentive compensation year-over-year,” added George Carrara, President and Chief Operating Officer of Kate Spade & Company.

Fourth quarter net sale up 9.8 percent

Net sales for the fourth quarter of 2016 were 471 million dollars an increase of 42 million dollars or 9.8 percent compared to the fourth quarter of 2015. Net sales for the quarter increased 43 million dollars or 10.1 percent, excluding sales for wind-down operations for the fourth quarter of 2015.

Direct-to-consumer comparable sales growth was 9.3 percent or down 1.5 percent excluding ecommerce. Comparable sales per square foot for kate spade new york stores were 1,557 dollars for the latest twelve months, compared to 1,615 dollars for the twelve month period ended October 1, 2016, partially impacted by foreign exchange rates.

Income from continuing operations was 87 million dollars or 0.67 dollar per diluted share compared to 62 million dollars or 0.48 dollar per diluted share, in the fourth quarter of 2015. Diluted earnings per share from continuing operations using a normalized tax rate were 0.41 dollar, compared to adjusted diluted earnings per share of 0.32 dollar in the fourth quarter of 2015.

North America segment net sales rise 9.5 percent

Kate Spade North America net sales for the fourth quarter were 407 million dollars, an increase of 35 million dollars or 9.5 percent compared to the fourth quarter of 2015. Kate Spade North America segment adjusted EBITDA was 107 million dollars (26.4 percent of net sales) for the quarter compared to 91 million dollars (24.5 percent of net sales) for the fourth quarter of 2015.

Kate Spade International net sales were 59 million dollars, an increase of 6 million dollars or 12.4 percent compared to the fourth quarter of 2015. Net sales increased 8 million dollars or 15.2 percent, excluding sales for wind-down operations for the fourth quarter of 2015. Kate Spade International Segment adjusted EBITDA was 10 million dollars (17.1 percent of net sales) and 4 million dollars (8.6 percent of net sales) in 2015. Segment adjusted EBITDA excluding wind-down operations was 5 million dollars (9.1 percent of adjusted net sales) for the fourth quarter of 2015.

Adelington Design Group net sales were 6 million dollars, an increase of 2.3 percent compared to the fourth quarter of 2015. Segment’s adjusted EBITDA was 1 million dollars (14.4 percent of net sales) compared to 2 million dollars (32.3 percent of net sales) for the fourth quarter of 2015. Segment adjusted EBITDA excluding wind-down operations was 1 million dollars (26.6 percent of net sales) for the fourth quarter of 2015.

Picture:Facebook/Kate Spade

Canada Goose files for IPO

Coyote fur-trimmed hoods have become near synonymous with Canada Goose, the down-filled parka brand that has taken the world by storm. From the streets of Amsterdam to New York to the characters of the new Fortitude series, everyone living in arctic climates appears to be clad in Canada Goose.

Its international success is the key driver to the company filing for an IPO. In its filing the company said it built a strong foundation evolving into a highly coveted global outerwear brand. Over the past three fiscal years, it has grown its revenue at a 38.3 percent, net income at a 196 percent and Adjusted EBITDA at 85 percent. Over the same period the company has made significant long-term investments in human capital, production capacity, brand building and distribution channels.

In its application the company stated: "We currently generate sales in every major Western European market and, while this is where the brand first achieved commercial success, we believe there are significant opportunities to accelerate these markets to their full potential. In the United Kingdom and France in particular, we have achieved strong traction through our retail partnerships, but have yet to fully extend our wholesale network and are only in the initial phase of executing on our shop-in-shop strategy. In both markets, we launched our e-commerce platforms in September 2016 and intend to establish our owned retail presence in the near future. While the United Kingdom and France are our most developed European markets, we have identified a number of markets with significant near-term development potential, such as Germany, Italy and Scandinavia."

An IPO could value the business at 2 billion dollars

Canada Goose is 70 percent owned by Bain Capital, its investment vehicle. The company hopes its IPO will value the business at 2 billion dollars. For the fiscal year ended March 31, 2016, Canada Goose's revenue was 290.8 million dollars, with a growth of 38.3 percent, as mentioned.

Canada Goose files for IPO

Risks to the business include the expense of expanding into new markets and competition. The brand was sold in 36 different countries through about 2,500 wholesalers at the end of December, the filing shows, and the company plans to expand with more stylistic options as well as lightweight outerwear, rain gear and footwear as new product categories.

Despite the company's transparent manufacturing methods, it has receives regular complaints for its use of fur. On its website Canada Goose notes: Our products are designed and built to protect against the elements in the coldest places on Earth – places where exposed skin can freeze in an instant. In these environments, we believe that fur is the best choice. Having fur trim around a jacket hood disrupts airflow and creates turbulent air which helps protect the face from frostbite.

We understand and respect that some people think animal products should never be used in any consumer products, however we do not share that view. We are committed to providing full transparency about how we make our products, including the ethical sourcing and responsible use of animal products.

Photo credit: Canada Goose, IPO; Graph, source: Quartz

Fossil Group posts decline in Q4 and FY16 revenue

In the fourth quarter, Fossil Group said that the stronger US dollar negatively impacted net sales by 18.3 million dollars, resulting in a decrease of 3 percent or 2 percent on a constant currency basis. For fiscal year 2016, the company said, impact from the strong US dollar negatively impacted net sales by 45.4 million dollars, resulting in net sales decrease of 6 percent or 4 percent on a constant currency basis as compared to fiscal 2015.

Commenting on the company’s performance, Kosta Kartsotis, Chief Executive Officer, Fossil said in the media release, “The fourth quarter of 2016 was pivotal for Fossil Group with our wearable launches demonstrating they could be the catalyst to drive growth in the watch category. Our mission in 2017 is very clear, to build upon the early success of wearables and execute against our New World Fossil initiative. 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.”

Financial review of Q4 and FY16 results

In the fourth quarter, the company reported worldwide net sales decrease of 3 percent or 33.3 million dollars as growth in the Skagen and Fossil brands was offset by a decline in the company’s multi-brand licensed watch portfolio with declines in traditional watches largely offset by growth in connected watches.

Declines in leathers and jewelry and changes in foreign currency also negatively impacted net sales. The company reported net income for the fourth quarter of of 49.7 million dollars compared to 70.4 million dollars for the fourth quarter of fiscal 2015. Diluted earnings per share were 1.03 dollars, compared to 1.46 dollars for the fourth quarter of fiscal 2015.

For fiscal year 2016, the company reported net income of 78.9 million dollars compared to 220.6 million dollars for fiscal 2015. Diluted earnings per share were 1.63 dollars, compared to 4.51 dollars for fiscal 2015.

Fossil reveals cautious outlook

On GAAP basis, the company expects net sales to be in the range of a 6.5 percent decline to flat for fiscal 2017 and operating margin in a range of 0.0 percent to 1.5 percent with diluted loss per share in a range of 0.50 dollar to 0.20 dollar. For the first quarter, the company expects net sales to decrease in the range of 13 percent to 9.5 percent, operating margin in a range of 8 percent to 6 percent and diluted loss per share in a range of 1.06 dollars to 0.92 dollar.

On a non-GAAP basis, the company expects constant currency net sales in the range between a 4.5 percent decline and a 2 percent increase, adjusted operating margin in a range of 3.5 percent to 5 percent and adjusted diluted earnings per share in a range of 1 dollar to 1.70 dollars, compared to adjusted diluted earnings per share of 1.80 dollars for fiscal 2016.

For the first quarter, the company expects constant currency net sales to decrease in the range of 11.5 percent to 8 percent, adjusted operating margin in a range of 2 percent to 0.0 percent and adjusted diluted loss per share in a range of 0.25 dollar to 0.10 dollar, compared to adjusted diluted earnings per share of 0.11 dollar for fiscal 2016.

Picture:Fossil