Fossil slashes 2012 outlook, Michael Kors closes in red

In a busy trading session, Fossil owned the markets after

announcing a drastic cut on its full year outlook on weakness in Europe and costs related to the acquisition of Danish watchmaker Skagen, sending its shares down 25 percent in pre-market trade.
 
The company, slashed its full-year earnings estimate to between $5.30 and $5.40 per share from $5.40 to $5.50. These compare to the consensus estimates of $5.56 per share, according to Thomson Reuters I/B/E/S.
 
First-quarter earnings rose to $58.1 million, or 93 cents per share, a cent above analysts' expectations. Revenue rose 9.8 percent to $589.5 million versus the analysts’ expected $617.6 million.
 
In a statement released Tuesday, Fossil Inc. forecasted current-quarter earnings below market’s estimates. “The acquisition will add to operational earnings in the quarter, but the integration costs would outweigh the gain,” the company advanced. Fossil bought privately held Skagen Designs Ltd in January last year for $236.8 million to expand in Europe.
 
Meanwhile, fashion peer Michael Kors Holdings saw its shares fell 6.3% to 41.34, but it was better than an intraday loss of more than 10%, highlighted Investor´s Businnes Daily. Also fashionable yoga clothes maker Lululemon Athletica fell 3.9% to 74.28. Same percent lost Ralph Lauren, down to 162.11, better than a morning loss of nearly 9% in advance to its reporting fourth-quarter results before the market opens on May 22.
 
In a better day than other Wall Street listed fashion companies, Coach shares withdrawn by 2.3% to 70.38 in afternoon trading, recovering from intraday losses of nearly 6%, as reported IBD. The luxurious leather item maker posted Q3 EPS rose 24%.