Shares of Fossil Group Inc. (FOSL, Financial) slid almost 15% in Wednesday trading on the back of the company reporting its financial results for the third quarter after the market closed Tuesday. The company posted adjusted EPS of four cents, which beat estimates of a loss of 14 cents but declined from the prior-year quarter. Revenue of $688.7 million beat expectations by $38.83 million but declined 6.7% year over year.
CEO Kosta Kartsotis said the business is making progess despite the challenging retail environment.
“So far this year, we have tripled our wearables business and continue to see these amazing new products materially improve the trajectory of our watch business," he said. "We and our partners are investing heavily in these products, and we are prepared for the important holiday season. With New World Fossil, we’re becoming leaner and more efficient, with nearly a 10% reduction in operating expenses in the quarter.”
The Wendy's Co.'s (WEN)Ă‚ shares fell 3% after the company reported third-quarter EPS of nine cents, which fell three cents short of analysts' estimates. Revenues of $308 million declined 15.4% year over year and missed expectations by $3.96 million.
U.S. same-restaurant sales rose 2%, which missed expectations of 2.4% growth.Ă‚
"We have now recorded 19 consecutive quarters of positive same-restaurant sales, a streak that is unmatched in the current QSR hamburger category and speaks to the strength and relevance of our brand,"Ă‚ President and CEO Todd Penegor said.Ă‚
Snap Inc. (SNAP, Financial) lost more than 18% on the back of the company reporting its financial results for the third quarter after the market closed Tuesday. The company posted a loss of 14 cents, beating estimates by one cent. Revenue of $207.9 million missed expectations of $236.9 million but increased 62% from the year-ago quarter.
The company's daily active users grew to 178 million during the period, registering an increase of 17% year over year. Moreover, capital expenditures were $25.9 million higher than the $17.2 million spent in the prior-year quarter.
Disclosure: The author holds no positions in any stocks mentioned.
