Why Fossil Group Stock Soared 14% This Morning
Shares of lifestyle accessory maker Fossil Group (NASDAQ: FOSL) jumped right out of the gate on Thursday, rising roughly 14% by 10 a.m. EDT. That's extra notable, being that the broader market was just break-even by 10 a.m. So this heady advance was company specific, and you can thank Fossil's earnings release after the close on Wednesday for the enthusiasm.
On the surface, Fossil's first quarter was pretty grim because of the impact of the global effort to slow the spread of COVID-19. Sales were lower by 16% year over year in the quarter. On the bottom line, the company lost $1.69 per share, much worse than the $0.25 loss in the first quarter of 2019. Meanwhile, Fossil highlighted that it was cutting costs, pulling back on spending, and drawing down on its revolving credit facility to shore up its balance sheet. Those are the right moves, of course, but they aren't exactly positive news.
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Source Fool.com
