FLASH: SHARES OF FOSL ARE BEING CLOWN-RAPED POST LARGE EARNINGS MISS

-26%!

Fossil beats by $0.01, misses on revs; guides Q2 EPS below consensus, revs above consensus; lowers FY12 EPS below consensus, raises revs in-line (guidance includes Skagen) (125.77 )

Reports Q1 (Mar) earnings of $0.93 per share, $0.01 better than the Capital IQ Consensus Estimate of $0.92; revenues rose 9.8% year/year to $589.5 mln vs the $617.61 mln consensus. Co issues mixed guidance for Q2, sees EPS of $0.77-0.79 vs. $0.94 Capital IQ Consensus Estimate; sees Q2 revs up ~19% YoY to ~$662.5 mln vs. $651.34 mln Capital IQ Consensus Estimate. Net sales of Skagen, included in this estimate, are expected to benefit overall sales growth by 6% during 2Q12. While the Company expects Skagen to deliver approximately $0.03 of operational earnings for the second quarter 2012, it is also expecting transaction related costs and other transition/integration activities to negatively impact second quarter diluted earnings per share by approximately $0.07. Co issues mixed guidance for FY12, lowers EPS to $5.30-5.40 from $5.40-5.50 vs. $5.57 Capital IQ Consensus Estimate; raises FY12 revs to up ~18% to ~$3.03 bln (up from +15%) vs. $3 bln Capital IQ Consensus Estimate. Net sales of Skagen, included in this estimate, are expected to benefit overall sales growth by 5%. Within this fiscal year 2012 earnings estimate the Company is including a diluted earnings per share benefit of $0.22 related to Skagen operational activities, partially offset by transaction and other transition/integration costs of $0.15 per diluted share. The co’s forward guidance is based upon the current prevailing rate of the U.S. dollar compared to other foreign currencies for countries in which the Company operates.