Fossil Group Inc. climbed as much as 60 percent in late trading after new wearable technology and e-commerce demand helped fuel a surprise sales gain in the holiday quarter.
Comparable sales — a key measure — climbed 2 percent in the fourth quarter, Fossil said on Tuesday. Analysts had projected a 6 percent decline, according to Consensus Metrix.
The results suggest Fossil is finally making headway in the market for smartwatches and other tech gear — an area dominated by Apple Inc. Its sales of wearable devices nearly doubled last year to more than $300 million and now account for 14 percent of its watch revenue. In addition to selling products under its own name, Fossil makes watches for brands like Michael Kors and Armani.
The stock climbed as high as $14.44 in extended trading. Even before the rally, it was up 16 percent this year through Tuesday’s close.