U.S. stocks retreated on Thursday morning ahead of Federal Reserve November policy statement. The Dow Jones Industrial Average fell 0.09% to 26,150, the S&P 500 index lost 0.34% to 2,804 and the Nasdaq Composite Index slid 0.50% to 7,533.
Shares of Fossil Group Inc. (FOSL, Financial) fell more than 7% on Thursday morning before reversing and trading higher. The company posted third-quarter earnings of 19 cents per share on $608.8 million in revenue, reflecting a 11.6% year-over-year decline. The company beat earnings estimates by 29 cents, but fell $7.5 million short of revenue expectations.
“Our third quarter operating performance reflects the ongoing success of our current strategy during a transformational period for our category and for Fossil Group," Chairman and CEO Kosta Kartsotis said. "We are highly focused on initiatives that improve our overall profitability and establish a foundation for sustainable growth.”
The gross margin rose 720 basis points to 53.6% due to an inventory evaluation, lower promotional activity and markdowns and favorable product mix. Operating income was $22.6 million, an improvement from an operating loss of $0.5 million in the third quarter of fiscal 2017.
For the full year, the company expects net sales to decline 9% to 7% and a gross margin between 52% and 53%. For the fourth quarter, the company projects net sales to decline 16% to 10% and a gross margin in the range of 51.5% to 53.5%.
Gainers
- TripAdvisor Inc. (TRIP, Financial)
- Hologic Inc. (HOLX, Financial)
- L Brands Inc. (LB, Financial)
- News Corp. (NWSA, Financial)
Losers
- Wynn Resorts Ltd. (WYNN, Financial)
- Perrigo Company PLC (PRGO, Financial)
- DaVita In.c (DVA, Financial)
- Qualcomm Inc. (QCOM, Financial)
- Albemarle Corp. (ALB, Financial)
Global markets
In Europe, the U.K.'s FTSE 100 rose 0.33%, France's CAC 40 fell 0.13%, Germany's Dax dipped 0.45% and Spain's IBEX 35 advanced 0.099%.
In Asia, Japan's Nikkei 225 gained 1.82%, India’s BSE Sensex jumped 0.70%, Hong Kong's Hang Seng rose 0.31% and China's Shanghai Composite slipped 0.22%.
Disclosure: The author holds no positions in any stocks mentioned.
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