Fossil to suffer higher costs rise

Wednesday, 14 May 2014

British sports retailer JD Sports Fashion is reportedly going shopping yet again. The athletic apparel company is understood to have acquired a stake in Leeds menswear independent The Hip Store. By the time being, further detail on the deal remains private.

In Greece, watch and fashion accessory retailer Fossil Group Inc (FOSL.O) forecast a much lower-than-expected profit for this quarter as costs rise. In order to offset these losses, the company has hinted a price rise, saying that expense rate would be "significantly higher" in the second quarter.

"Our biggest challenges are the retail environment here in the US and jump starting our leathers business," said Chief Financial Officer Dennis Secor. Fossil shares fell 8 percent in extended trading after the company reported the third straight decline in quarterly comparable sales in North America, its biggest market, reported Reuters.

Meanwhile, ‘Forbes’ advanced that analysts are looking for decreased profit for Nordstrom when the company reports its results for the first quarter on Thursday, May 15, 2014. Nordstrom reported profit of 73 cents a year ago, but the consensus estimate calls for earnings per share of 67 cents this time around, the financial journal noted.

Thus, market would be expecting earnings of 3.84 dollars per share for the fiscal year while revenue should come in at a 4 percent higher than the year-earlier total of 2.75 billion dollars. Revenue expected for the quarter is 2.86 billion dollars for the quarter. For the year, revenue is projected to roll in at 13.35 billion dollars.

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