Fossil's http://www.rajpauljewellers.co.uk/burberry-accessories/burberry-handbags.html ceo http://www.rajpauljewellers.co.uk/ tackles q1 2012 results

Excellent day, along with gentlemen, many thanks for standing by.The pet the fossil, corporation.'s First Quarter Fiscal 2012 Earnings business call.[ Operating instructional materials] This office meeting is being recorded today, Sunday, Could 8, 2012.With thanks.Good snack, anybody.Long before going to we begin, you must be aware that during this conference call, certain discussions will contain forward looking expertise.Actual results could differ materially from those which is projected during these discussions.Fossil's policy on forward looking statements and details concerning a number of factors that could cause actual results to differ materially from such statements is readily available in our form 10 k and 10 q reports filed with the sec.In most cases, fossil undertakes no obligation to publicly update or revise any forward looking terms, whether on account of new information, future events or in http://www.rajpauljewellers.co.uk/burberry-women/burberry-hoodies.html any manner, except as obliged by law.If any non gaap financial is through used on this call, a presentation of the most directly comparable gaap financial measure and a winning your ex back of this non gaap financial measure to gaap will be provided as supplemental financial information to this release under the earnings release section under the investor relations heading on fossil's website.Please note that you may listen to a live webcast or a replay of this call by visiting fossil's website and then clicking on about us at the foot of the homepage and then on investor relations and select webcast.Now i choose to turn the call over to fossil's chairman and ceo, kosta kartsotis.Excellent, allison.Good daybreak, any individual.And joining us today in our dallas office to talk about our first quarter are mike kovar, our favorite cfo;Furthermore jennifer pritchard, our ceo of retail.Mark speedily, all vice chairman, is bringing in from our new york office today.We can give a short overview and then open up the call for questions.Our business has become very dynamic over the past decades, with sales growing an estimated 65% and earnings even beyond doubling from the 2009 level.We have many business units across our global footprint that are in various stages of market penetration and channel development.We believe that we have a unique an chance create a much larger global enterprise.Both of our 2 core business owners, the fossil logo and our multi brand watch business, sit for substantial growth.And our focus appears to have been on investing in our strategic objectives in order to deliver consistent long term, eco friendly growth.So each pair of we fell short of our sales targets in q1, we believe we made a lot of progress on much of the initiatives we have in place to advance our long term strategies.Throughout the first quarter, we were no firing in all cylinders.Our paychecks, while little ahead of our prior guidance, lacked the degree of strength we desired.Continued weak economic health problems in europe and parts of asia, weight reduction resultant impact of certain product line adjustments were magnified in what is historically our lowest sales quarter of the year.We must also of course in last year's first quarter, our sales were up 37% and our salary were up 62%.By 2012, community.Quarter sales, on http://www.rajpauljewellers.co.uk/burberry-women/burberry-hoodies.html a relentless currency basis, keep grew at double digit rates, and the outcomes continue to hit record levels.As you might think fossil brand, we continued on the path of giving a clearer, more aspirational image of the trademark, sustained by online catalog and point of sale marketing.Simply because, the brand has continued towards a more iconic ambiance that more clearly communicates an image of authenticity and american vintage.Within first quarter, our fossil brand watches continued to help increase at a double digit rate achieving an 11% increase, which was on top of a 19% increase for duration last year.Our women's handbags also performed relatively well, soaring by 9% during the quarter.In our hindsight progress, we feel we missed some business by without needing enough spring color in both our watch and accessory offerings.Our sales in fossil fine pieces of gorgeous accessories were down on a comp basis, as we are in a repositioning that cost us some sales, particularly in europe.Malls and vacating the optical frames business in europe.Direct to purchaser sales, led by our fossil store enterprise, rose 19% and comp online site sales were up 8%.This followed a 21% comp store increase yr after and a 20% increase from first quarter of 2010.We were very happy to see asia lead our store comps for the quarter with an 18% increase, following 26% gain last year.In nova scotia, comp sales actions were up 11%, using a 26% increase last year.On the contrary, in eu, we saw comps reject by 5%, as the weak economy continued to weigh down the results.Also adding to the decrease was the initial impact of the repositioning of fossil jewelry, especially using the fact that europe represents our most heavily penetrated region for that product category.Over the check of the year, we will continue to focus on helping the productivity of our existing stores, while quickly moving new openings.With 5 new stores in the first quarter and 65 lease obligations to date, we stick to track to open 70 to 75 new stores this year.The new stores will provide our outlet and accessory store concepts, fairly equally split between locations in us and overseas.Or the 5 stores we closed in q1, we are preparing to close an additional 18 less productive stores over the balance of the year.We are moving aggressively to capitalize on the we see for outlet stores for both fossil and watch stations, especially outside america.Our outlet stores have a high roi and represent our primary circulation channel for clearing discontinued fossil and licensed product.The expansion of our locations globally will also provide us a more efficient means of clearing discontinued product within our regional environment.Main, we expect our fossil brand sales to return to double digit growth for most of the year as we introduce our new jewelry offering, maintain our strong watch and accessory momentum and expand our retail outlet base and concession locations.Converting to our multi brand watch business.Sales rose 14% throughout the world, following a 44% improvement in last year's first quarter.Highlights of our watch brands include an 11% development of fossil and a 20% rise in the sale of licensed watches.In the license portfolio, jordan kors grew by 48%, marc by marc jacobs by 67% and armani replace by 46%.These types of on top of double digit, and perhaps triple digit increases last year.As well, diesel brand grew by 23% and burberry gone up 14% during q1.We expect strong increases across our license collection, most as we expand into new geographies with michael kors, marc by marc and armani pass on.As to our jewelry provider, as we spoke of, we are in the whole process of reformulating the fossil jewelry business, which we think will deliver an even bigger opportunity long term.Generally, the kors jewelry launch is going highly and we expect it to reach $30 million this year.We also will be expanding the skagen jewelry business which we think can be very successful, specifically in europe.You may recall here is where fossil jewelry started and then it grew very quickly in that market.
 

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