Diamonds and Dogs
Fossil (FOSL) skyrocketed over 70% following better than expected earnings. The fashion designer reported adjusted earnings of $0.64 per share on revenue of $929.8 million, soaring past Wall Street's expectations of $0.38 per share and $889.7 million. Sales of wearables grew 40% year-over-year during the quarter. For 2017, sales of wearables nearly doubled to over $300 million, or 14% of total watch sales. Fossil's progress in wearables is paying dividends and transforming them into a smaller, but more profitable company.
No buddy is cutting coupons. Groupon (GRPN) is down 10% to a three month low following disappointing earnings. The Online coupon company missed earnings expectations as sales declined 3.5% to $873 million below estimates. The company also lowered 2018 revenue estimates to $2.6 billion below consensus of $2.90 billion. Gross profits will be flat or a bit lower as well. Groupon expects to spend more marketing in 2018 to support North America which leads into International business.
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