Net sales at Fossil Inc. for the first fiscal quarter ended April 7 increased 15.4 percent to $304.8 million.

Gross profits for the period increased 17.4 percent to $156.1 million, more than half of net sales. The growth came mostly from international sales, as domestic sales of watches dropped 3.8 percent (1 percent excluding sales of discontinued product).

Licensed-watch sales offset declines in sales of mass-market and special-market watches.

Cash, cash equivalents and short-term investments increased 118.7 percent to $148.7 million for the quarter, and inventory decreased 7.2 percent to $235.6 million.

In related news, following an independent audit, Fossil has begun working on revising its consolidated financial statements for fiscal years 2004 and 2005 and the first and second fiscal quarters of 2006.

The company has incurred about $5.3 million in legal and accounting fees related to the investigation, including approximately $5.1 million incurred during the first quarter.



Source: Nationaljeweler.com

www.nationaljeweler.com