Fossil Group To Acquire Misfit Inc.; Updates Full Year Guidance - Quick Facts

(RTTNews) - Fossil Group, Inc. (FOSL) announced it has entered into a definitive agreement to acquire Misfit, Inc., an innovator in wearable technology and stylish connected devices. Misfit brings to Fossil Group a scalable cloud and app platform, a world-class software and hardware engineering team, a native wearable technology brand and a pipeline of innovative products. The purchase price is $260 million, including transaction costs.

Sonny Vu will serve as president and chief technology officer of connected devices for Fossil Group, Inc., and will be a member of the company's executive leadership team.

On GAAP basis, for fiscal 2015, the company now expects: net sales to decrease in the range of 10.5% to 8.0%, and earnings per share in a range of $4.15 to $4.75. The company also provided an estimate of its guidance in constant dollars, excluding the impact of fiscal 2015 restructuring charges, the sales impact from the extra week in fiscal 2014 and the Misfit transaction costs. For fiscal 2015, adjusted guidance is: net sales to decrease in the range of a 3.5% to 1.0% and earnings per share in a range of $5.60 to $6.20.

In August, the company projected its fiscal 2015 net sales to decrease in the range of 8.0% to 4.0%; and earnings per share in a range of $4.80 to $5.60. The company's prior adjusted guidance was: net sales to be in the range of a 1.0% decrease to a 3.0% increase; and earnings per share in a range of $6.20 to $7.00.

For the fourth quarter of fiscal 2015, On a GAAP basis, the company expects: net sales to decrease in the range of 16.0% to 7.0%, and earnings per share in a range of $1.05 to $1.65. For the fourth quarter of fiscal 2015, adjusted guidance is: net sales to decrease in the range of 11.0% to 2.0%, and earnings per share in a range of $1.40 to $2.00.

In the third quarter of fiscal 2015, the company's reported worldwide net sales decreased 14% or $123.2 million as growth in the SKAGEN and FOSSIL brands was offset by a decline in the multi-brand licensed watch portfolio and the negative impact of changes in foreign currency. In constant currency, earnings per share for the third quarter of fiscal 2015 were $1.59, including a restructuring charge of $0.05 per share.