-
TWO THOUSAND AND TEN -
2000
1900
1800
1700
1600
1500
1400
1300
1200
1100
0
375
350
325
300
275
250
225
200
175
150
125
0
250
225
200
175
150
125
100
75
50
25
0
1000
900
800
700
600
500
400
300
200
100
0
06 07 08 09 10
NET SALES
(in thousands of dollars)
06 07 08 09 10
OPERATING INCOME
(in thousands of dollars)
06 07 08 09 10
NET INCOME
(in thousands of dollars)
06 07 08 09 10
STOCKHOLDERS’ EQUITY
(in thousands of dollars)
Fiscal year
[In Thousands, Except Per Share Data]
Net sales
Gross profit
Operating income
Income before taxes attributable to Fossil, Inc.
2010
2009
2008
2007
2006
$2,030,690
$1,548,093
$1,583,242
$1,432,984
$1,213,965
1,155,164
844,850
851,151
742,031
608,919
376,414
372,448
211,627
213,776
205,770
186,485
123,325
189,429
187,526
118,795
Net income attributable to Fossil, Inc.
255,205
139,188
138,0971
123,2612
77,582
Earning per share:
Basic
Diluted
Weighted average common shares
and common equivalent shares outstanding:
3.83
3.77
2.09
2.07
2.051
2.021
1,812
1.752
1.15
1.13
Basic
Diluted
66,701
67,687
66,684
67,153
67,525
68,323
68,213
70,333
67,177
68,817
Working capital
$ 801,329
$701,193
$556,497
$546,410
$357,608
Total assets
1,467,573
1,276,483
1,087,296
1,122,628
852,597
Total long-term liabilities
76,377
62,791
74,964
66,432
22,914
Stockholders’ equity attributable to Fossil, Inc.
1,044,118
962,781
802,144
771,662
602,201
Return on average stockholders’ equity
attributable to Fossil, Inc.
25.0 %
16.2 %
17.8%
18.3%
14.2%
(1) Includes a $20.8 million benefit in income tax expense related to the reduction of certain current and long-term tax liabilities in connection with completion of prior
year income tax audits.
(2) Includes $8.6 million in expenses, net of tax, relating to our voluntary evaluation of our accounting for equity-based compensation, including the appropriateness of
accounting measurement dates used to determine the amounts of compensation charges and related tax effects which have been previously disclosed in filings with
the Securities and Exchange Commission.
Dear Stockholders,
2010 was a truly remarkable
year with explosive growth
across our FOSSIL brand of
products and multi-brand
watch portfolio. Continued
product innovation, increased
marketing initiatives and
continuing momentum in
the overall watch market
culminated in sales exceeding
a new milestone of $2 billion.
FOSSIL brand product sales, combined across
all product lines and geographies, were up 24% for
fiscal year 2010 as well as the 4th quarter, while
our global multi-brand watch business grew at an
astounding rate of 40% for fiscal year 2010 and 42%
in the 4th quarter. Our growth was broad-based
store count of approximately 55 doors while also
launching several commerce-based websites outside
of the U.S. We are also exploring the opportunities
within our multi-brand portfolio to expand our watch
concession footprint, primarily in the Asia Pacific
market, in addition to leveraging our Watch Station
retail format.
The broad-based growth we achieved last year
opened increasing avenues of growth for our
company. Given the strength of the FOSSIL brand
combined with our resources and positioning in
the global watch market, we have a much larger
opportunity than we thought just a short time ago.
This is especially true in Asia, which we believe could
represent one-third of our sales over time versus
just 13% of sales currently. With FOSSIL and our
portfolio of fashion brand watches, we have a huge
runway ahead of us all over the world. Our focus
in fiscal 2011 will be to continue to capitalize on
all our opportunities while continuing to build our
capabilities to maximize the long-term growth of
the company.
across all geographies and brands underscoring the
Finally, we would like to thank our 10,500
significant strength of our business model and the
employees worldwide as well as our customers,
strong execution of our team. Our consistent ability
suppliers and stockholders for their continued
to lead the market with innovative use of materials
support and dedication.
and designs continues to resonate with our customers
and allows us to compete in a full price manner,
strengthening brand value and profitability.
Sincerely,
k o s ta n . k a r t s o t i s
Chairman of the Board
and Chief Executive Officer
For our core FOSSIL brand, targeted marketing
initiatives including catalogs, internet advertising,
search and social media accelerated sales in our
wholesale, online and owned retail channels of
distribution. These initiatives drove Fossil same store
sales growth of 19% for the year, in addition to 50%
growth in ecommerce sales. We ended fiscal year
2010 with 364 stores, a net add of 10 doors from last
fiscal year, with all of the net pick up in store growth
taking place outside of the U.S. During fiscal 2011, it
is our intent to leverage FOSSIL’s brand strength and
owned store economics through a net increase in
E X EC U T I V E OF F IC E R S & DI R EC TOR S
Kosta N. Kartsotis
Chairman of the Board
and Chief Executive Officer
Jal S. Shroff
Director
Livio Galanti
Executive Vice President
Mike L. Kovar
Executive Vice President,
Chief Financial Officer
and Treasurer
Jennifer Pritchard
President,
Retail Division
Mark D. Quick
Vice Chairman
Elaine Agather
Director
Jeffrey N. Boyer
Director
Elysia Holt Ragusa
Director
James E. Skinner
Director
Michael Steinberg
Director
Donald J. Stone
Director
James M. Zimmerman
Director
COR P OR AT E I N FOR M AT ION
Transfer Agent and Registrar
Principal Independent Auditors
Corporate Counsel
Mellon Investor Services LLC
P. O. Box 358015
Pittsburgh, PA 15252-8015
Deloitte & Touche LLP
2200 Ross Avenue
Dallas, TX 75201
Haynes and Boone, LLP
2323 Victory Avenue | Suite 700
Dallas, TX 75219
OU R W E B S I T E
The Company maintains a website at the worldwide internet address of www.fossil.com. Certain product,
event, and investor relations information concerning the Company is available at the site.
A N N UA L M E E T I NG
The Annual Meeting of Stockholders will be held on Wednesday, May 25, 2011, at 9:00 am at the Company’s
headquarters, 2280 N. Greenville Ave., Richardson, Texas.
COM PA N Y I N FOR M AT ION
A copy of the Company’s Annual Report on Form 10-K, as filed with the Securities and Exchange Commission,
and the Annual Report to Stockholders, in addition to other Company information, is available to stockholders
without charge upon written request to Fossil, Investor Relations, 2280 N. Greenville Ave., Richardson, Texas
75082-4412, or online at www.fossil.com.