Fossil, Electronic Arts: S&P Laggards
The S&P 500 fell 5.86 points, or 0.43%, to close at 1,363.72.
Shares of Fossil dropped 37.57.% to $78.52 on Tuesday. Before the opening bell, the Richardson, Texas-based accessories company reported first-quarter earnings that slightly exceeded analysts' expectations but sales came in softer than anticipated.
Fossil's first-quarter earnings were $58.1 million, or 93 cents a share, up from year-earlier earnings of $$55.8 million, or 86 cents a share. Analysts, on average, expected earnings of 92 cents a share.
First-quarter net sales were $589.5 million; analysts were expecting sales of $617.6 million.
Fossil shares trade at an estimated price-to-earnings ratio for next year of 11.71X; the average for clothing and accessories companies is 15.1X. For comparison, PVH(PVH) has a lower forward P/E of 11.43X.
Nine of the 17 analysts who cover Fossil rate it at buy. Seven analysts give the stock a hold rating and one rates it at sell.
The stock has fallen 1.06% year to date.