Fossil -13.6% as promotions whack bottom line

• Fossil (NASDAQ:FOSL +0.9%) reports global comparable store sales increased 7.7% in Q4.
• Sales by category: Watches -1%, leathers -2%, jewelry +13%.
• Gross margin rate -60 bps to 56.8% with promotional activity increased.
• Operating margin rate -110 bps to 16.1%.
• Guidance: FY15 sales expected to fall 7.5% to 5.5%. Operating margin seen in 6%-7% range.
• FOSL -13.6% after hours.