Fossil (FOSL)

Common Stock Repurchase Program.  During 2008 and 2007, the Company’s Board of Directors approved two stock repurchase programs, pursuant to which up to 4,000,000 shares of its common stock may be repurchased.  During 2008 and 2007, the Company repurchased and retired 3.6 million and 0.4 million shares, respectively, of its common stock under these repurchase programs at a cost of approximately $105.9 million and $15.9 million, respectively.  The repurchase programs were conducted pursuant to Rule 10b-18 of the Securities Exchange Act of 1934 and were completed in April 2008 and November 2008.

 

Common Stock Repurchase Program.  During fiscal year 2007, our Board of Directors approved a stock repurchase program (the “2007 Repurchase Program”), pursuant to which up to 2,000,000 shares of our common stock may be repurchased.  In the second quarter of fiscal 2008, our Board of Directors approved an additional stock repurchase program (the “2008 Repurchase Program”), pursuant to which up to an additional 2,000,000 shares of our common stock may be repurchased.  During the Year to Date Period, we have repurchased and retired 1,638,738 and 1,394,800 shares of our common stock under the 2007 Repurchase Program and the 2008 Repurchase Program, respectively, for an average price per share of $33.50 and $28.67, respectively.  The 2007 Repurchase Program was completed during the second quarter of fiscal 2008 and the total cost of repurchases during the Year To Date Period was approximately $54.9 million.  This amount was in addition to the $15.9 million spent in fiscal 2007 in acquiring 361,262 shares under this program.  Total repurchases for the Year To Date Period under the 2008 Repurchase Program were approximately $40.0 million.  The 2008 Repurchase Program is being conducted pursuant to Rule 10b-18 of the Exchange Act and is expected to be completed in the fourth quarter of fiscal year 2008.  As a result of these stock repurchase programs, the excess of the aggregate purchase price over the aggregate par value of the shares repurchased has been allocated between additional paid in capital and retained earnings, resulting in an approximate $79.4 million reduction in retained earnings during the Year To Date Period.