Reuters ProVestor Plus Company Report

17 September 2010

Fossil, Inc. (NASD:FOSL)

Table of Contents

Overview 2 Industry Returns 7

Stock Price Performance 3 Industry Profitability 8
Industry Overview 4 Annual Financial Statements 9 - 14
Quarterly Trends 5 Quarterly Financial Statements 15 - 20
Industry Valuation 6

©2010 Reuters Research. All rights reserved. Copying and redistribution prohibited. Reuters obtains information from sources deemed reliable but does not warrant its accuracy and disclaims for
itself and its information providers all liability arising from its use. No information provided shall constitute tax, legal, or investment advice, or an offer to buy or sell securities.
 Fossil, Inc. (NASD:FOSL) Reuters ProVestor Plus Company Report

Overview
Fiscal Year ends January 02. All data are on a fiscal year basis except where noted. All financials are reported to conform to the current year presentation and may reflect certain
reclassifications made in prior years. TTM = Trailing Twelve Month. MRQ = Most Recent Quarter.

Business Summary
Fossil, Inc. is a global designer, marketer and distributer company that specializes in consumer fashion accessories. Its offerings include a line of men's and women's fashion watches and jewelry,
handbags, small leather goods, belts, sunglasses, footwear, cold weather accessories and apparel. Its products are distributed globally through a range of distribution channels, including wholesale in
countries where it has a physical presence, direct to the consumer through its retail stores and commercial Websites and through third-party distributors in countries, where it does not maintain a
physical presence. Fossil, Inc. sells its products through a diversified distribution network that includes department stores, specialty retail locations, specialty watch and jewelry stores, owned retail and
factory outlet stores, mass market stores, owned and affiliate Internet sites and through its FOSSIL catalogs.

Financial Summary
BRIEF: For the twenty six weeks ended 3 July 2010, Fossil, Inc.'s revenues increased 26% to $805.8M. Net income totaled $90.4M, up from $33.9M. Revenues reflect an increase in income from
North America wholesale segment, higher revenue from Europe segment & Asia Pacific segment and an increase in income from Direct to consumer sales. Net income also reflects a decrease in
interest expenses and improved gross operational margins.

Share Price Summary Percent Price Change Overview

Close Price on 9/17/10 $51.58 Time Period FOSL S&P 500 Float (mil) 53.052
Absolute Price Change on 9/17/10 (0.30) Year to Date 53.70 0.94 10 Day Average Volume (mil) 0.667
Percent Change (0.57%) One Year 76.41 5.64 1 Day Volume Change on 9/17/10 76.74%
52-Week High $52.08 Two Years 98.01 (2.66) Market Capitalization (mil) $3,462
52-Week Low $26.14 Three Years 43.28 (23.77) TTM Price/Earnings 17.89
Beta 1.629 Five Years 155.36 (9.07) Price/Earnings Current Fiscal Year Estimate 15.99

10 Year Price Chart (Monthly) 5 Year Price Chart (Monthly)

$60.00 $60.00

50.00

40.00
40.00

30.00
20.00

20.00

11.64 14.60

2001 2002 2003 2004 2005 2006 2007 2008 2009 Vol (mil) 2006 2007 2008 2009 2010 Vol (mil)

Price History
Calendar Year 2003 2004 2005 2006 2007 2008 2009 Qtr. to Date Yr. to Date
High Price 20.13 32.37 28.95 23.84 46.25 40.74 34.18 52.08 52.08
Low Price 10.63 17.68 14.96 15.89 20.98 11.51 11.00 35.49 31.31
Year End Price 18.75 25.64 21.51 22.58 41.98 16.70 33.56 NA NA

High P/E 98.90 152.11 191.31 NA NA 158.09 55.60 NM 17.66

Low P/E 29.19 42.25 52.99 NA NA 23.83 11.53 NM 15.73
Year End P/E 64.99 92.75 74.31 NA NA 34.57 16.19 NA NA
Dividend Yield (%) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 NA NA

Per Share Statistics and Current Price Multiples Employees

Per Share Multiple Employee Count 7,900
Earnings (TTM) $2.88 17.9 Sales Per Employee (TTM) $217,087
Book Value (MRQ) $15.34 3.4 Net Income Per Employee (TTM) $25,641
Cash Flow (TTM) $3.59 14.4
Revenues (TTM) $25.28 2.0

17 September, 2010 Page 2

 Fossil, Inc. (NASD:FOSL) Reuters ProVestor Plus Company Report

Stock Price Performance

TTM = Trailing Twelve Month. YTD = Year to Date.

52 Week Price History

$60.00

50.00

50 Day Moving Average

40.00

30.00

20.00
200 Day Moving Average
10.00

Volume (mil)

Average Volume 0.66

Sep Oct '09 Nov Dec Jan '10 Feb Mar Apr May Jun Jul Aug Sep

Price Performance Analyst Footnotes

Actual Percent vs. vs. Rank in Industry 4/04, FY'00 Q's are 6/02, 8/99, 4/98, 3-for-2 stock
Time Period Change Change S&P 500 Industry Industry Rank splits. reclassified. FY'04 Qs are reclassified.
4 Week 7.43 16.8% 11.2% 1.0% 80 98
13 Week 11.06 27.3% 26.4% (5.0%) 87 100
26 Week 13.22 34.5% 38.6% 2.2% 79 100 Insider Trading
52 Week 22.34 76.4% 67.0% 5.5% 70 99
Year To Date 18.02 53.7% 52.3% 1.8% 72 99 In the last 6 months, there have been no insider
purchases, and there have been 10 insider sales for a
total of 229,530 shares.
Bar Chart Key Rank Key
YTD 4 Wk. Worst Best 1 100 Net Change (6 months) (0.2)
6 Month Net Transactions (10)

Equity Information
Common Stock $.01 Par, 08/10, 100M auth. 67,122,724 issd. Insiders owns 20.96%. IPO: 4/93, 2.76M shares @ $7.50 by Montgomery
Securities. PO 5/98, 2,150,000 shares(215K by the Co.) @ $19 by Salomon Smith Barney.

Officers Institutional Ownership

Kosta N. Kartsotis Chief Executive Officer, Director
Michael W. Barnes President, Chief Operating Officer, Director Net Change (Most Recent Quarter) (125,483.3%)
Mark D. Quick Vice Chairman Net Purchases (Most Recent Quarter) (100.00 bil)
Michael L. Kovar Chief Financial Officer, Executive Vice President, Treasurer Shares Purchased (Most Recent Quarter) (100.00 bil)
Jennifer . Pritchard President - Retail Division Shares Sold (Most Recent Quarter) (100.00 bil)

Headquarters
2280 N. Greenville Avenue Telephone: (972) 234-2525
Richardson, TX 75082 Facsimile: (972) 348-1366
United States

17 September, 2010 Page 3

 Fossil, Inc. (NASD:FOSL) Reuters ProVestor Plus Company Report

Industry Overview
Fossil, Inc. is in the Jewelry & Silverware Industry of the Consumer Cyclical Sector. Below is a list of companies most similar to the market capitalization of Fossil, Inc. in the Jewelry &
Silverware Industry and listed in descending order. There are 15 companies in this industry. TTM = Trailing Twelve Months.

Peer Comparisons
Company Name (Ticker Symbol) Market Cap. TTM Revenue Net P/E Price 52-Week 52-Week
(Millions) (Millions) Margin 9/17/10 9/17/10 High Low
Fossil, Inc. (FOSL) $3,462.36 $1,714.99 11.8% 17.9x $51.58 $52.08 $26.14
Kingold Jewelry Inc., (KGJI) $396.36 $320.33 4.5% 7.4x $9.49 $11.95 $0.16
Movado Group, Inc (MOV) $270.38 $379.31 (13.4%) NA $10.94 $15.10 $8.66
Fuqi International, Inc. (FUQI) $180.97 $466.88 10.3% 3.1x $6.55 $31.36 $4.51
LJ International, Inc. (JADE) $89.35 $125.23 6.0% 12.1x $3.62 $3.98 $1.91
Charles & Colvard, Ltd. (CTHR) $44.29 $10.69 (2.9%) NA $2.30 $3.25 $0.44
Jade Art Group Inc (JADA) $26.31 $27.08 54.2% 1.8x $0.33 $1.09 $0.18
Swank, Inc. (SNKI) $14.24 $119.40 1.0% 12.5x $2.51 $3.05 $2.00
Gold Bag Inc (GBGI) $12.29 $0.00 NA NA $0.20 $0.74 $0.13
Tri-Mark MFG Inc (TIMR) $4.50 $0.10 (58.2%) NA $0.50 $0.75 $0.29
Bergio International, Inc. (BRGO) $1.37 $1.07 (93.9%) NA $0.01 $0.93 $0.00
Asia Time Corporation (ATYM) $1.06 $147.00 7.8% 0.1x $0.04 $0.06 $0.00
Finlay Enterprises, Inc. (FNLYQ) $0.08 $708.51 (16.9%) NA $0.01 $0.08 $0.00
House of Taylor Jewelry Inc. (HOTJ) $0.04 $30.14 (27.3%) NA $0.00 $0.01 $0.00
Syratech Corporation (SYRA) $0.00 $180.64 (17.8%) NA $0.00 $0.06 $0.00

17 September, 2010 Page 4

 Fossil, Inc. (NASD:FOSL) Reuters ProVestor Plus Company Report

Quarterly Trends
Years are Fiscal Years. Current Fiscal Year End is January 02.
TTM = Trailing Twelve Month.

Price/Earnings and Price/Sales Bands

Monthly High Prices entering this shaded area indicate possible overvaluation
Share
Close $100.00
Price
($ USD) Low
50.00
Earnings Bands

Sales Bands 20.00

Valuation bands are based 10.00

on 5 year historical high
and low Trailing Twelve
Month (TTM) P/E and 5.00
Price/Sales values applied
each quarter to the TTM
EPS for earnings bands and
to the TTM sales for the $2.00
sales bands. Prices entering this shaded area indicate possible undervaluation

0.32 0.30 0.28 0.31 0.36

Quarterly EPS 0.21 0.26 0.25
0.14 0.16
0.46 0.51 0.43 0.75 0.43 0.36 0.54 0.69 0.52 1.03 0.53 0.80
$ USD Diluted

Quarterly Sales
232.5 458.7 260.2 324.2 264.2 259.2 299.7 390.8 304.8 306.5 358.6 463.1 356.2 353.2 409.8 464.1 323.0 315.9 381.4 527.8 393.2 412.6
$ USD Millions
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
2005 2006 2007 2008 2009 2010

Industry Comparison of Revenue Growth and EBITD Margin*

Companies with higher than average EBITD margin and EBITD Margin (TTM)
revenue growth are doing well. Companies with a low
EBITD margin and revenue growth are suffering. -20% -10% 0% 10% 20%

100%

Revenue Growth (TTM)

Companies for this scatter plot have a market
capitalization between $1 thousand and $3 billion.
Companies with NA or NM values do not appear.
ATYM
*EBITD – Earnings Before Interest, Taxes and
Depreciation.
HOTJ
FUQI

50%

JADA(87%)

FOSL

SNKI JADE
FNLYQ MOV
0%

CTHR
TTM Revenue Quintile
81 - 100% > $709 million
SYRA
61 - 80% $379-709 million
41 - 60% $125-379 million
21 - 40% $30-125 million
0 - 20% < $30 million
-50%

17 September, 2010 Page 5

 Fossil, Inc. (NASD:FOSL) Reuters ProVestor Plus Company Report

Industry Valuation
This page compares selected valuation measures for Fossil, Inc. with other companies in the Jewelry & Silverware Industry as well as the S&P 500.
TTM = Trailing Twelve Month. MRQ = Most Recent Quarter.

Valuation Ratios
FOSL Industry Sector S&P 500 Company Rank in Industry
Price/Earnings for Trailing Twelve Months 17.9 16.8 23.9 18.7 100
High Price/Earnings for the Last 5 Years 31.1 31.0 29.5 32.1 67
Low Price/Earnings for the Last 5 Years 5.5 5.5 9.6 10.4 67
Beta 5 Year Monthly Average 1.6 1.6 1.7 1.0 60
Price/Sales for Trailing Twelve Months 2.0 1.8 1.2 2.4 79
Price/Book for Most Recent Quarter 3.4 3.5 3.3 3.5 84
Price/Cash Flow for Trailing Twelve Months 14.2 15.7 13.0 13.1 100
Price/Tangible Book for Most Recent Quarter 3.7 3.8 5.3 5.2 82
Price/Free Cash Flow for Trailing Twelve Months 19.1 22.2 14.6 22.2 84
Worst Best
Ratios for Fossil, Inc. use the September 17 closing price of $51.58. Fossil, Inc. trades at a higher multiple of trailing earnings than the
average for the Jewelry & Silverware Industry and at a higher multiple of sales than the industry average.

Dividend Comparisons Dividend Trends

Fiscal Dividends Dividend
FOSL Industry Sector S&P 500 Year Per Share Yield (%)
Dividend Yield NA NM 1.9% 2.5% 2009Q4 $0.000 0.0%
5 Year Average Yield 0.0% 0.1% 1.7% 2.0% 2009Q3 $0.000 0.0%
5 Year Dividend Growth Rate NA (100.0%) (19.4%) 4.5% 2009Q2 $0.000 0.0%
Payout Ratio for Trailing Twelve Months 0.0 0.0 18.6 27.7 2009Q1 $0.000 0.0%
2009 $0.000 0.0%

Industry Comparison of Revenue Growth and Earnings Yield

Companies that exhibit both a high earnings yield and Earnings (TTM) Yield
high revenue growth are generally more attractive than
companies with low revenue growth and low earnings -20% 0% 20% 40% 60%

100%

Revenue Growth (TTM)

yield.
KGJI(225%)
Companies for this scatter plot have a market
capitalization between $1 thousand and $3 billion.
Companies with NA or NM values do not appear.
ATYM(1,037%)

HOTJ(-25,879%)
FUQI

50%
JADA

FOSL

SNKI
JADE
FNLYQ(-142,251%)
MOV
0%

CTHR
TTM Revenue Quintile
81 - 100% > $467 million
SYRA(-3,230,970%)
61 - 80% $320-467 million
41 - 60% $125-320 million
21 - 40% $30-125 million
0 - 20% < $30 million BRGO(-119%)
-50%

17 September, 2010 Page 6

 Fossil, Inc. (NASD:FOSL) Reuters ProVestor Plus Company Report

Industry Returns
TTM = Trailing Twelve Month.

Company Quality
Profitability Ratios (%) FOSL Industry Sector S&P 500 Company Rank in Industry
Gross Margin for Trailing Twelve Months 56.2 49.0 30.9 44.8 82
Gross Margin for Past 5 Years 52.5 46.5 31.9 44.8 80
Operating Margin for Trailing Twelve Months 16.4 11.9 7.8 19.6 93
Operating Margin for Past 5 Years 12.3 9.4 6.3 18.2 100
EBITD Margin for Trailing Twelve Months 18.8 14.2 10.4 24.4 92
EBITD Margin for Past 5 Years 14.8 11.8 10.1 22.9 100
Pretax Margin for Trailing Twelve Months 16.5 11.2 7.4 17.1 93
Pretax Margin for Past 5 Years 12.2 9.0 5.9 17.2 100
Net Margin for Trailing Twelve Months 11.8 7.1 5.0 13.0 93
Net Margin for Past 5 Years 8.3 6.0 4.2 12.1 100
Effective Tax Rate for Trailing Twelve Months 28.4 28.2 23.5 28.1 72
Effective Tax Rate for Past 5 Years 31.6 30.6 30.9 30.1 88
The trailing twelve month gross margin for Fossil, Inc. is higher than the average for the industry.

Efficiency Ratios (TTM) FOSL Industry Sector S&P 500 Company Rank in Industry
Asset Turnover 1.4 1.8 1.1 0.9 72
Receivables Turnover 11.4 15.0 6.9 10.9 91
Inventory Turnover 2.7 3.4 13.7 12.6 60
Revenue/Employee $217,087 $268,544 $461,248 $843,549 25
Net Income/Employee $25,641 $25,870 $41,475 $109,567 43
The revenue per employee for Fossil, Inc. is lower than the industry average.

Management Effectiveness Ratios (%) FOSL Industry Sector S&P 500 Company Rank in Industry
Return on Assets for TTM 16.9 12.7 6.2 8.1 74
Return on Assets for Past 5 Years 11.7 8.8 6.0 8.4 88
Return on Investment for TTM 20.1 12.2 8.8 10.5 79
Return on Investment for Past 5 Years 15.3 11.6 7.9 12.0 75
Return on Equity for TTM 20.9 19.4 14.6 18.7 77
Return on Equity for Past 5 Years 16.1 10.9 15.0 20.2 72
Worst Best
The trailing twelve month return on assets for Fossil, Inc. is higher than the industry average.

Industry Comparison of Profit Margin (TTM) and Profit Margin (5-Yr. Avg.)
Companies with trailing twelve month profit margins Profit Margin (5-Yr. Avg.)
above their 5-year average are improving their
profitability. -10% -5% 0% 5% 10%

20%

Profit Margin (TTM)

Companies for this scatter plot have a market
capitalization between $1 thousand and $3 billion.
Companies with NA or NM values do not appear.

FOSL

10%
FUQI

ATYM

JADE
KGJI

SNKI
0%

CTHR
-10%

TTM Revenue Quintile

81 - 100% > $709 million
61 - 80% $379-709 million MOV
41 - 60% $181-379 million
21 - 40% $125-181 million
FNLYQ
0 - 20% < $125 million SYRA
-20%

17 September, 2010 Page 7

 Fossil, Inc. (NASD:FOSL) Reuters ProVestor Plus Company Report

Industry Profitability
TTM = Trailing Twelve Month. MRQ = Most Recent Quarter.

Financial Strength
FOSL Industry Sector S&P 500 Company Rank in Industry
Quick Ratio 3.3 2.4 1.4 1.3 80
Current Ratio 4.7 4.6 2.5 1.8 74
Total Debt to Equity 0.0 0.0 0.8 0.7 100
Long Term Debt to Equity 0.0 0.0 0.7 0.7 100
Interest Coverage for Trailing Twelve Months 1,277.1 13.1 8.3 13.5 100
Worst Best
Values are for Most Recent Quarter unless noted otherwise. Fossil, Inc. is less leveraged than the average for the Jewelry & Silverware
industry.

Growth Rates (%)

% Growth Rate FOSL Industry Sector S&P 500 Company Rank in Industry
Sales Growth For Most Recent Quarter 30.6 30.2 27.5 16.2 47
Sales Growth For Trailing 12 Months 13.4 8.8 3.3 5.6 62
Sales Growth For Past 5 Years 10.1 7.6 2.8 9.6 78

Capital Spending Growth for Past 5 Years 5.8 0.3 0.5 6.3 72

EPS Growth for Most Recent Quarter 222.2 118.2 40.7 17.1 94
EPS Growth for Trailing Twelve Months 65.9 65.4 11.9 19.0 67
EPS Growth for Past 5 Years 11.1 11.0 0.0 11.5 60
Worst Best
The 5 year revenue growth for Fossil, Inc. is faster than the industry average. The 5 year earnings growth rate is faster than the industry
average.

Industry Comparison of Profit Margin and Effective Tax Rate

Earnings of companies with below average tax rates Effective Tax Rate (TTM)
might erode if the tax rate increases.
20% 23% 25% 28% 30%

15%

Profit Margin (TTM)

Companies for this scatter plot have a market
capitalization between $1 million and $3 billion. JADA(54%)
Companies with NA or NM values do not appear.

FOSL

FUQI

10%
ATYM

JADE(10%)
5%

KGJI

TTM Revenue Quintile

81 - 100% > $2 billion
61 - 80% $0.3-2 billion
41 - 60% $147-320 million
21 - 40% $119-147 million
SNKI(39%)
0 - 20% < $119 million
0%

17 September, 2010 Page 8

 Fossil, Inc. (NASD:FOSL) Reuters ProVestor Plus Company Report

Annual Financial Statements

Years are Fiscal Years.
Currency in Thousands of U.S. Dollars (except per share values). Shares in Thousands.

Annual Income Statement

2002 2003 2004 2005 2006 2007 2008 2009
52 Weeks 52 Weeks 52 Weeks 52 Weeks 53 Weeks 52 Weeks 52 Weeks 52 Weeks
Jan. 04, 2003 Jan. 03, 2004 Jan. 01, 2005 Dec. 31, 2005 Jan. 06, 2007 Jan. 05, 2008 Jan. 03, 2009 Jan. 02, 2010
Reclassified as of Reclassified as of Restated as of Restated as of Reclassified as of Reclassified as of
Jan. 01, 2005 Jan. 01, 2005 Jan. 06, 2007 Jan. 06, 2007 Jan. 02, 2010 Jan. 02, 2010
Net sales $663,338 $781,175 $957,309 $1,043,120 $1,213,965 $1,432,984 $1,583,242 $1,548,093
Total Revenue $663,338 $781,175 $957,309 $1,043,120 $1,213,965 $1,432,984 $1,583,242 $1,548,093

Cost of sales $330,335 $381,210 $454,699 $507,980 $605,046 $690,953 $732,091 $703,243
Selling expenses 185,552 225,686 269,465 311,302 357,813 398,602 489,600 478,637
Administrative exp 51,521 64,529 102,401 114,850 127,781 156,944 155,781 154,586
Total Operating Expense $567,408 $671,425 $826,565 $934,132 $1,090,640 $1,246,499 $1,377,472 $1,336,466

Interest expense ($107) ($62) ($32) ($321) ($3,554) ($890) ($555) ($235)
Interest income 1,013 1,415 1,283 1,590 1,113 5,362 4,209 1,310
Minority interest expense (1,958) (3,221) (4,054) (4,343) (4,382) NA NA NA
Equity in the earnings of joint
ventures 842 1,200 1,873 1,856 706 2,202 1,562 1,146
Currency gains (losses) (528) 598 6,943 (3,780) 2,039 (826) (16,897) 5,779
Royalty income 611 561 302 510 415 447 453 478
Other gains (losses) NA NA (851) (1,552) (867) 1,134 (338) (207)
Other (expense) income net 176 (770) NA NA NA NA NA NA
Net Income Before Taxes $95,979 $109,471 $136,208 $102,948 $118,795 $193,914 $194,204 $219,898
Provision for Income Taxes 37,072 41,136 46,663 27,278 41,213 65,426 52,351 75,604
Net Income After Taxes $58,907 $68,335 $89,545 $75,670 $77,582 $128,488 $141,853 $144,294

Minority Interest NA NA NA NA NA ($5,227) ($3,756) ($5,106)

Net Income Before Extra. Items $58,907 $68,335 $89,545 $75,670 $77,582 $123,261 $138,097 $139,188

Net Income $58,907 $68,335 $89,545 $75,670 $77,582 $123,261 $138,097 $139,188

EPS Reconciliation
2002 2003 2004 2005 2006 2007 2008 2009

Income Available to Com Excl

ExtraOrd $58,907 $68,335 $89,545 $75,670 $77,582 $123,261 $138,097 $139,188

Income Available to Com Incl

ExtraOrd $58,907 $68,335 $89,545 $75,670 $77,582 $123,261 $138,097 $139,188

Basic Weighted Average Shares 68,990 69,817 70,367 70,476 67,177 68,213 67,525 66,684
Basic EPS Excluding ExtraOrdinary
Items $0.85 $0.98 $1.27 $1.07 $1.15 $1.81 $2.05 $2.09
Basic EPS Including ExtraOrdinary
Item $0.85 $0.98 $1.27 $1.07 $1.15 $1.81 $2.05 $2.09

Diluted Net Income $58,907 $68,335 $89,545 $75,670 $77,582 $123,261 $138,097 $139,188

Diluted Weighted Average Shares 72,357 73,182 72,998 72,424 68,817 70,333 68,323 67,153
Diluted EPS Excluding ExtraOrd Items $0.81 $0.93 $1.23 $1.04 $1.13 $1.75 $2.02 $2.07
Diluted EPS Including ExtraOrd Items $0.81 $0.93 $1.23 $1.04 $1.13 $1.75 $2.02 $2.07

Normalized Income Before Taxes $95,979 $109,471 $136,208 $102,948 $118,795 $193,914 $194,204 $219,898
Inc Tax Ex Impact of Sp Items 37,072 41,136 46,663 27,278 41,213 65,426 52,351 75,604
Normalized Income After Taxes $58,907 $68,335 $89,545 $75,670 $77,582 $128,488 $141,853 $144,294

Normalized Inc. Avail to Com. $58,907 $68,335 $89,545 $75,670 $77,582 $123,261 $138,097 $139,188

Basic Normalized EPS $0.85 $0.98 $1.27 $1.07 $1.15 $1.81 $2.05 $2.09
Diluted Normalized EPS $0.81 $0.93 $1.23 $1.04 $1.13 $1.75 $2.02 $2.07

Trend Graphs on next page

17 September, 2010 Page 9

 Fossil, Inc. (NASD:FOSL) Reuters ProVestor Plus Company Report

Annual Financial Statements

Years are Fiscal Years.
Currency in Thousands of U.S. Dollars (except per share values). Shares in Thousands.

Income Statement Trend Graphs

Bar graphs of specific Income Statement items can be used to help in identifying volatility.

Annual EBITD Margin (%) EPS Diluted (Excl. Extraord.) Net Annual Revenue Annual Gross Margin (%)
Fiscal Year 2009 (52 Weeks) 16.3 $2.07 $1,548,093 54.6
Fiscal Year 2008 (52 Weeks) 15.3 $2.02 $1,583,242 53.8
Fiscal Year 2007 (52 Weeks) 15.3 $1.75 $1,432,984 51.8
Fiscal Year 2006 (53 Weeks) 13.0 $1.13 $1,213,965 50.2
Fiscal Year 2005 (52 Weeks) 12.9 $1.04 $1,043,120 51.3
Fiscal Year 2004 (52 Weeks) 16.0 $1.23 $957,309 52.5
Fiscal Year 2003 (52 Weeks) 16.5 $0.93 $781,175 51.2
Fiscal Year 2002 (52 Weeks) 16.6 $0.81 $663,338 50.2

17 September, 2010 Page 10

 Fossil, Inc. (NASD:FOSL) Reuters ProVestor Plus Company Report

Annual Financial Statements

Years are Fiscal Years.
Currency in Thousands of U.S. Dollars. Shares in Thousands.

Annual Balance Sheet

2002 2003 2004 2005 2006 2007 2008 2009
As of As of As of As of As of As of As of As of
Jan. 04, 2003 Jan. 03, 2004 Jan. 01, 2005 Dec. 31, 2005 Jan. 06, 2007 Jan. 05, 2008 Jan. 03, 2009 Jan. 02, 2010
Reclassified as of Restated as of Restated as of
Assets Jan. 01, 2005 Dec. 31, 2005 Jan. 06, 2007
Cash and cash equivalents $112,348 $158,062 $185,430 $58,222 $133,304 $255,244 $172,012 $405,175
Securities available for sale 5,576 5,991 6,277 6,553 6,894 12,626 6,436 7,995
Accounts receivable 98,951 131,552 166,401 150,993 165,036 237,381 219,373 225,784
Doubtful Debt (12,600) (11,700) (11,100) (9,800) (9,800) (9,900) (13,400) (16,000)
Finished Merchandise 83,470 83,059 124,678 192,121 175,519 217,097 252,523 201,515
Merchandise at Store 11,430 14,782 21,503 23,206 31,807 NA NA NA
Merchandise in Transit 15,025 15,803 17,728 18,509 21,496 23,826 30,056 35,012
Work-In-Process 2,417 4,385 3,703 4,807 1,691 5,129 3,339 2,943
Components/Parts 9,481 8,760 11,555 14,763 9,786 15,615 22,354 17,041
Obsolescence NA NA NA (12,397) (12,074) (13,219) (16,317) (10,797)
Prepaid expenses and other current
asset 15,944 19,973 31,271 41,387 36,923 56,797 60,084 48,868
Deferred income tax assets net 13,597 8,653 19,790 18,808 20,406 24,221 27,006 28,937
Total Current Assets $355,639 $439,320 $577,236 $507,172 $580,988 $824,817 $763,466 $946,473

Building $35,516 $44,125 $46,776 $54,112 $72,334 $80,304 $77,660 $78,916

Improvements 19,851 21,912 26,611 30,484 43,637 58,451 86,844 99,736
Land 9,300 8,828 10,056 14,307 15,979 16,968 18,113 19,738
Furn. & Fixt. 45,271 50,084 57,039 54,507 66,996 76,068 83,980 85,847
Computer Equip. 20,151 44,449 58,144 62,024 68,375 87,091 90,726 101,187
Constr. in Prog. 13,812 4,074 2,225 15,615 13,361 2,007 6,763 9,271
Depreciation (40,789) (57,406) (77,991) (83,806) (109,183) (134,847) (156,758) (182,328)
Goodwill 13,799 17,136 39,812 40,667 43,038 45,485 43,217 44,266
Trademarks 5,540 2,541 1,767 1,890 2,015 2,417 2,620 2,646
Customer list NA 0 5,300 5,300 8,274 8,279 7,656 7,786
Patents 530 504 571 644 713 733 752 764
Other Intangibles NA 117 135 118 194 205 196 201
Accumulated Amortization (933) (978) (1,719) (2,643) (3,990) (5,341) (9,159) (13,628)
Tradenames-not subject to
amortization NA 4,000 29,702 28,947 29,263 29,869 23,327 20,815
Investments 1,926 4,635 7,018 9,352 10,855 13,902 13,011 13,730
Other Assets 2,913 4,200 5,111 6,452 9,748 16,220 34,882 41,063
Total Assets $482,526 $587,541 $787,793 $745,142 $852,597 $1,122,628 $1,087,296 $1,276,483

Liabilities
Accounts payable $32,999 $32,362 $48,861 $60,628 $53,306 $111,015 $91,027 $103,591
Accrued Accounts Payable NA 16,772 21,850 20,028 23,562 NA NA NA
Accrued Compens. 11,314 15,648 20,767 22,259 28,896 44,224 34,091 39,773
Royalties NA 10,543 NA 8,316 14,265 22,524 17,078 16,774
Accrued Advert. 13,784 14,292 16,146 15,178 11,554 17,769 21,869 18,498
Other Accrued 33,028 11,040 26,791 16,550 27,388 32,833 30,306 29,618
Short term debt 2,505 2,805 27,085 8,552 11,338 9,993 5,271 3,618
Income taxes payable 20,832 22,297 48,603 29,159 53,071 40,049 7,327 33,408
Total Current Liabilities $114,462 $125,759 $210,103 $180,670 $223,380 $278,407 $206,969 $245,280

Long-term debt NA NA NA NA $0 $3,452 $4,733 $4,538

Capital Lease NA 0 1,487 NA NA NA NA NA
Total Long Term Debt NA 0 1,487 NA 0 3,452 4,733 4,538
Deferred income tax liabilities 23,599 32,861 46,021 28,936 15,021 16,168 22,880 27,039
Minority interest in subsidiaries 3,924 5,495 6,182 2,527 4,102 6,127 3,219 5,631
Long-term income taxes payable NA NA NA NA 0 38,455 38,784 18,840
Other long-term liabilities NA NA NA 6,692 7,893 8,357 8,567 12,374
Total Liabilities $141,985 $164,115 $263,793 $218,825 $250,396 $350,966 $285,152 $313,702

Shareholder Equity
Common Stock $464 $699 $711 $683 $678 $697 $665 $669
Additional paid-in capital 27,096 25,648 39,045 47,675 53,459 88,000 81,905 93,037
Retained earnings 311,019 379,354 469,923 475,504 529,376 646,492 695,427 834,615
Treasury Stock NA NA NA 0 (1,337) 0 0 NA
Unrealised gains or loss on
securities NA NA NA NA 19 (688) (1,437) (344)
Unrealised gains or loss on forward
cont NA NA NA NA (338) (3,398) 3,815 (549)
Cumulative translation Adjustment NA NA NA NA 20,344 40,559 21,769 35,353

Continued on next page

17 September, 2010 Page 11

 Fossil, Inc. (NASD:FOSL) Reuters ProVestor Plus Company Report

Annual Financial Statements

Years are Fiscal Years.
Currency in Thousands of U.S. Dollars. Shares in Thousands.

Annual Balance Sheet, continued

2002 2003 2004 2005 2006 2007 2008 2009
As of As of As of As of As of As of As of As of
Jan. 04, 2003 Jan. 03, 2004 Jan. 01, 2005 Dec. 31, 2005 Jan. 06, 2007 Jan. 05, 2008 Jan. 03, 2009 Jan. 02, 2010
Reclassified as of Restated as of Restated as of
Jan. 01, 2005 Dec. 31, 2005 Jan. 06, 2007
Accumulated other comprehensive
income 4,263 20,969 19,447 7,676 NA NA NA NA
Deferred Comp. (2,301) (3,244) (5,126) (5,221) 0 NA NA NA
Total Equity $340,541 $423,426 $524,000 $526,317 $602,201 $771,662 $802,144 $962,781

Total Liabilities & Shareholders'

Equity $482,526 $587,541 $787,793 $745,142 $852,597 $1,122,628 $1,087,296 $1,276,483

S/O-Common Stock 69,588 69,942 71,109 68,319 67,725 69,713 66,502 66,900
Total Common Shares
Outstanding 69,588 69,942 71,109 68,319 67,725 69,713 66,502 66,900

T/S-Common Stock NA NA NA 0 69 0 0 0

Balance Sheet Trend Graphs

Bar graphs of specific Balance Sheet items can be used to help in identifying volatility.

Cash and Equivalents Total Liabilities Total Equity Shares Outstanding

Fiscal Year 2009 $405,175 $313,702 $962,781 66,900
Fiscal Year 2008 $172,012 $285,152 $802,144 66,502
Fiscal Year 2007 $255,244 $350,966 $771,662 69,713
Fiscal Year 2006 $133,304 $250,396 $602,201 67,725
Fiscal Year 2005 $58,222 $218,825 $526,317 68,319
Fiscal Year 2004 $185,430 $263,793 $524,000 71,109
Fiscal Year 2003 $158,062 $164,115 $423,426 69,942
Fiscal Year 2002 $112,348 $141,985 $340,541 69,588

17 September, 2010 Page 12

 Fossil, Inc. (NASD:FOSL) Reuters ProVestor Plus Company Report

Annual Financial Statements

Years are Fiscal Years.
Currency in Thousands of U.S. Dollars.

Annual Cash Flow Statement

2002 2003 2004 2005 2006 2007 2008 2009
52 Weeks 52 Weeks 52 Weeks 52 Weeks 53 Weeks 52 Weeks 52 Weeks 52 Weeks
Jan. 04, 2003 Jan. 03, 2004 Jan. 01, 2005 Dec. 31, 2005 Jan. 06, 2007 Jan. 05, 2008 Jan. 03, 2009 Jan. 02, 2010
Reclassified as of Restated as of Reclassified as of Reclassified as of
Cash From (Used By) Operations Jan. 06, 2007 Jan. 06, 2007 Jan. 02, 2010 Jan. 02, 2010
Net Income $58,907 $68,335 $89,545 $75,670 $77,582 $128,488 $141,853 $144,294
Depreciation 14,230 18,948 23,339 26,510 32,049 32,796 37,642 41,334
Deferred income taxes 13,674 13,283 (15,542) (17,082) (15,485) (3,952) 1,106 3,235
Sale Fixed Assets 369 426 (129) (727) 72 (82) 154 618
Impairment loss NA NA 863 0 318 170 10,570 5,232
Equity in Affiliate (827) (1,841) (1,515) (1,907) (685) (2,202) (1,562) (449)
Stock based compensation NA NA 3,231 4,221 5,293 6,148 7,253 6,787
Minority Interest 1,958 3,221 4,054 4,343 4,382 NA NA NA
Allow. Returns 484 1,042 547 1,544 3,126 3,459 2,406 (557)
Distribution from joint venture NA NA NA NA 0 0 955 0
Allow. Doubt. Accts. 907 292 (1,216) (744) (1,254) 111 3,441 2,599
Excess tax benefits from stock based
com NA NA 6,006 3,379 (1,474) (17,727) (574) (1,166)
Deferred Comp. 283 906 NA NA NA NA NA NA
Option Tax Benefit 3,053 3,082 NA NA NA NA NA NA
Accounts receivable (15,537) (37,669) (27,918) 10,555 (18,903) (75,975) 17,712 (4,180)
Inventories (14,783) (4,188) (45,424) (57,392) 17,776 (20,063) (45,558) 44,569
Prepaid Exp./Other (5,463) (1,973) (3,924) (9,999) 5,408 (19,875) (1,497) 8,491
Accounts Payable 16,398 (9,281) 13,260 8,852 (9,481) 27,650 (18,756) 6,101
Accrued expenses 6,802 11,874 12,266 3,441 24,349 34,895 (13,351) 1,777
Income taxes payable 594 7,170 23,781 (16,115) 25,386 38,123 (32,840) 7,303
Cash from Operating Activities $81,049 $73,627 $81,224 $34,549 $148,459 $131,964 $108,954 $265,988

Plus: Cash From (Used By) Investment Activities

Capital Expenditures ($26,860) ($28,926) ($28,407) ($53,202) ($50,787) ($40,246) ($63,934) ($37,687)
Business acquisitions, net of cash
acqui (4,373) (104) (47,863) (4,439) (7,227) (1,582) 0 0
Prop./Equipment Sale NA NA 1,217 525 151 1,984 791 76
Market Secs. (216) (308) (298) (1,293) (287) 4,508 12,386 938
Purchase of securities available for
sal NA NA NA 0 0 (10,372) (7,106) (1,237)
Intangible/Other 917 (1,359) (929) (2,032) (3,242) (6,834) (23,664) (385)
Cash from Investing Activities ($30,532) ($30,697) ($76,280) ($60,441) ($61,392) ($52,542) ($81,527) ($38,295)

Plus: Cash From (Used By) Financing Activities

Minority Interest ($1,319) ($1,650) ($3,403) ($8,006) ($2,813) ($2,209) ($6,660) ($2,693)
Excess tax benefits from stock based
com NA NA 0 0 1,474 17,727 574 1,166
Issue. Common Stock 6,438 8,203 10,482 5,650 5,116 29,060 4,909 3,756
Acquire/Retire Comm. (59) (14,347) (6,923) (75,260) (25,930) (16,209) (105,873) 0

Payments on notes payable NA NA NA NA $0 $0 ($120,216) ($7,055)

Borrowings on notes payable ($13,998) $300 $23,629 ($18,155) $2,028 $1,361 $114,462 $5,111

Cash from Financing Activities ($8,938) ($7,494) $23,785 ($95,771) ($20,125) $29,730 ($112,804) $285

Foreign Exchange Effects $3,278 $10,278 ($1,361) ($5,545) $8,140 $12,788 $2,145 $5,185

Equals: Increase (Decrease) In Cash

Net Change in Cash $44,857 $45,714 $27,368 ($127,208) $75,082 $121,940 ($83,232) $233,163

Beginning of year $67,491 $112,348 $158,062 $185,430 $58,222 $133,304 $255,244 $172,012
Net Cash - Ending Balance 112,348 158,062 185,430 58,222 133,304 255,244 172,012 405,175
Cash Interest Paid 11 36 30 315 3,471 755 569 443
Cash Taxes Paid 17,608 24,567 33,110 59,774 29,858 40,219 77,240 62,957

Trend Graphs on next page

17 September, 2010 Page 13

 Fossil, Inc. (NASD:FOSL) Reuters ProVestor Plus Company Report

Annual Financial Statements

Years are Fiscal Years.
Currency in Thousands of U.S. Dollars.

Cash Flow Trend Graphs

Bar graphs of specific Cash Flow items can be used to help in identifying volatility.

Cash from Operations Total Capital Expenditures Cash from Financing Net Change in Cash
Fiscal Year 2009 (52 Weeks) $265,988 ($37,687) $285 $233,163
Fiscal Year 2008 (52 Weeks) $108,954 ($63,934) ($112,804) ($83,232)
Fiscal Year 2007 (52 Weeks) $131,964 ($40,246) $29,730 $121,940
Fiscal Year 2006 (53 Weeks) $148,459 ($50,787) ($20,125) $75,082
Fiscal Year 2005 (52 Weeks) $34,549 ($53,202) ($95,771) ($127,208)
Fiscal Year 2004 (52 Weeks) $81,224 ($28,407) $23,785 $27,368
Fiscal Year 2003 (52 Weeks) $73,627 ($28,926) ($7,494) $45,714
Fiscal Year 2002 (52 Weeks) $81,049 ($26,860) ($8,938) $44,857

17 September, 2010 Page 14

 Fossil, Inc. (NASD:FOSL) Reuters ProVestor Plus Company Report

Quarterly Financial Statements

Years are Fiscal Years.
Currency in Thousands of U.S. Dollars (except per share values). Shares in Thousands.

Quarterly Income Statement

Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009 Q4 2009 Q1 2010 Q2 2010
13 Weeks 13 Weeks 13 Weeks 13 Weeks 13 Weeks 13 Weeks 13 Weeks 13 Weeks
Oct. 04, 2008 Jan. 03, 2009 Apr. 04, 2009 Jul. 04, 2009 Oct. 03, 2009 Jan. 02, 2010 Apr. 03, 2010 Jul. 03, 2010
Reclassified as of Reclassified as of Reclassified as of
Oct. 03, 2009 Jan. 02, 2010 Jul. 03, 2010
Net sales $409,760 $464,107 $323,028 $315,865 $381,362 $527,838 $393,229 $412,560
Total Revenue $409,760 $464,107 $323,028 $315,865 $381,362 $527,838 $393,229 $412,560

Cost of Sales $185,583 $221,723 $153,648 $148,683 $170,625 $230,287 $173,810 $175,675
Selling expenses 120,644 148,236 108,088 107,522 115,263 147,764 124,855 129,192
Administrative exp 39,795 36,192 37,489 37,184 38,110 41,803 43,301 43,347
Total Operating Expense $346,022 $406,151 $299,225 $293,389 $323,998 $419,854 $341,966 $348,214

Interest expense ($79) ($184) ($63) ($69) ($50) ($53) ($58) ($59)
Other income - net (2,692) (7,582) 4,683 4,550 (1,660) 934 2,534 237
Net Income Before Taxes $60,967 $50,190 $28,423 $26,957 $55,654 $108,865 $53,739 $64,524
Provision for Income Taxes 23,447 4,166 9,683 9,709 19,109 37,103 16,043 7,965
Net Income After Taxes $37,520 $46,024 $18,740 $17,248 $36,545 $71,762 $37,696 $56,559

Net income attributable to noncont ($1,049) $248 ($1,420) ($625) ($1,270) ($1,791) ($1,789) ($2,074)
Net Income Before Extra. Items $36,471 $46,272 $17,320 $16,623 $35,275 $69,971 $35,907 $54,485

Net Income $36,471 $46,272 $17,320 $16,623 $35,275 $69,971 $35,907 $54,485

EPS Reconciliation
Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009 Q4 2009 Q1 2010 Q2 2010
Income Available to Com Excl
ExtraOrd $36,471 $46,272 $17,320 $16,623 $35,275 $69,971 $35,907 $54,485

Income Available to Com Incl

ExtraOrd $36,471 $46,272 $17,320 $16,623 $35,275 $69,971 $35,907 $54,485

Basic Weighted Average Shares 67,261 66,338 66,546 66,668 66,714 66,831 67,039 67,446
Basic EPS Excluding ExtraOrdinary
Items $0.54 $0.70 $0.26 $0.25 $0.53 $1.05 $0.54 $0.81
Basic EPS Including ExtraOrdinary
Item $0.54 $0.70 $0.26 $0.25 $0.53 $1.05 $0.54 $0.81

Diluted Net Income $36,471 $46,272 $17,320 $16,623 $35,275 $69,971 $35,907 $54,485

Diluted Weighted Average Shares 68,049 66,644 66,546 67,110 67,408 67,672 67,953 68,278
Diluted EPS Excluding ExtraOrd Items $0.54 $0.69 $0.26 $0.25 $0.52 $1.03 $0.53 $0.80
Diluted EPS Including ExtraOrd Items $0.54 $0.69 $0.26 $0.25 $0.52 $1.03 $0.53 $0.80

Normalized Income Before Taxes $60,967 $50,190 $28,423 $26,957 $55,654 $108,865 $53,739 $64,524
Inc Tax Ex Impact of Sp Items 23,447 4,166 9,683 9,709 19,109 37,103 16,043 7,965
Normalized Income After Taxes $37,520 $46,024 $18,740 $17,248 $36,545 $71,762 $37,696 $56,559

Normalized Inc. Avail to Com. $36,471 $46,272 $17,320 $16,623 $35,275 $69,971 $35,907 $54,485

Basic Normalized EPS $0.54 $0.70 $0.26 $0.25 $0.53 $1.05 $0.54 $0.81
Diluted Normalized EPS $0.54 $0.69 $0.26 $0.25 $0.52 $1.03 $0.53 $0.80

Trend Graphs on next page

17 September, 2010 Page 15

 Fossil, Inc. (NASD:FOSL) Reuters ProVestor Plus Company Report

Quarterly Financial Statements

Years are Fiscal Years.
Currency in Thousands of U.S. Dollars (except per share values). Shares in Thousands.

Income Statement Trend Graphs

Bar graphs of specific Income Statement items can be used to help in identifying volatility.

Quarterly EBITD Margin (%) EPS Diluted (Excl. Extraord.) Net Quarterly Revenue Quarterly Gross Margin (%)
Second Quarter 2010 18.0 $0.80 $412,560 57.4
First Quarter 2010 15.6 $0.53 $393,229 55.8
Fourth Quarter 2009 22.6 $1.03 $527,838 56.4
Third Quarter 2009 17.6 $0.52 $381,362 55.3
Second Quarter 2009 10.4 $0.25 $315,865 52.9
First Quarter 2009 10.5 $0.26 $323,028 52.4
Fourth Quarter 2008 14.7 $0.69 $464,107 52.2
Third Quarter 2008 18.0 $0.54 $409,760 54.7

17 September, 2010 Page 16

 Fossil, Inc. (NASD:FOSL) Reuters ProVestor Plus Company Report

Quarterly Financial Statements

Years are Fiscal Years.
Currency in Thousands of U.S. Dollars. Shares in Thousands.

Quarterly Balance Sheet

Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009 Q4 2009 Q1 2010 Q2 2010
As of As of As of As of As of As of As of As of
Oct. 04, 2008 Jan. 03, 2009 Apr. 04, 2009 Jul. 04, 2009 Oct. 03, 2009 Jan. 02, 2010 Apr. 03, 2010 Jul. 03, 2010
Reclassified as of Reclassified as of
Assets Apr. 04, 2009 Apr. 03, 2010
Cash and cash equivalents $117,811 $172,012 $195,400 $264,090 $297,963 $405,175 $449,902 $434,544
ST Investments 7,432 6,436 7,516 7,980 8,749 7,995 8,254 8,445
Accounts Receivablle 278,263 261,569 208,350 186,553 235,580 265,750 222,486 221,559
Doubtful Debt (48,967) (55,596) (49,946) (47,370) (51,099) (55,966) (58,821) (58,641)
Merchandise in Transit 46,407 30,056 27,077 26,853 41,632 35,012 35,803 43,915
Finished Merchandise 271,030 252,523 256,950 221,859 233,938 201,515 206,402 239,639
Work-In-Process 5,073 3,339 1,935 1,080 1,726 2,943 3,014 3,542
Components/Parts 23,209 22,354 14,731 15,802 16,162 17,041 17,691 25,251
Obsolescence (14,105) (16,317) (15,611) (15,462) (13,847) (10,797) (12,589) (14,877)
Prepaid/Other 67,479 60,084 57,459 61,167 54,237 48,868 56,304 74,897
Deferred income tax assets - net 25,188 27,006 27,394 28,728 29,665 28,937 28,066 26,292
Total Current Assets $778,820 $763,466 $731,255 $751,280 $854,706 $946,473 $956,512 $1,004,566

Property plant and equipment $354,326 $364,086 $363,137 $374,379 $386,867 $394,695 $392,367 $389,033
Depreciation (153,087) (156,758) (160,399) (166,479) (175,045) (182,328) (185,231) (186,940)
Goodwill 44,326 43,217 42,892 43,765 44,194 44,266 43,649 43,081
Intangible 67,159 69,433 71,622 75,633 76,312 73,275 72,785 70,590
Amortisation (6,679) (9,159) (10,065) (11,266) (12,354) (13,628) (14,509) (15,152)
Invest. - Affiliate 13,564 13,011 10,219 11,987 12,756 13,730 8,647 8,456
Total Assets $1,098,429 $1,087,296 $1,048,661 $1,079,299 $1,187,436 $1,276,483 $1,274,220 $1,313,634

Liabilities
Account Payable $108,107 $91,027 $69,787 $70,615 $109,651 $103,591 $89,306 $88,993
Accrued Advertising 13,132 21,869 10,383 10,893 10,825 18,498 9,766 11,342
Accrued Compensation 38,087 34,091 29,371 29,333 31,569 39,773 30,039 34,893
Accrued royalties 15,799 17,078 8,968 11,603 12,065 16,774 13,922 18,586
Other Accrued 29,510 30,306 27,068 26,099 33,609 29,618 30,583 42,732
Short term debt 4,485 5,271 4,849 3,505 3,735 3,618 3,565 3,776
Income Taxes Payable 42,481 7,327 4,432 2,307 28,620 33,408 34,813 15,492
Total Current Liabilities $251,601 $206,969 $154,858 $154,355 $230,074 $245,280 $211,994 $215,814

Long-term debt $3,367 $4,733 $4,460 $4,473 $4,613 $4,538 $4,344 $4,140
Total Long Term Debt $3,367 $4,733 $4,460 $4,473 $4,613 $4,538 $4,344 $4,140

Long-term income taxes payable $41,396 $38,784 $39,963 $40,739 $22,511 $18,840 $19,140 $7,218
Deferred income tax liabilities 17,462 22,880 26,248 28,297 32,617 27,039 25,531 36,815
Noncontrolling interest 5,777 3,219 2,128 2,661 3,928 5,631 5,042 5,243
Other long-term liabilities 10,796 8,567 8,780 9,384 9,607 12,374 12,342 12,715
Total Liabilities $330,399 $285,152 $236,437 $239,909 $303,350 $313,702 $278,393 $281,945

Shareholder Equity
Common stock $670 $665 $666 $667 $667 $669 $674 $672
Paid in Capital 80,526 81,905 83,593 85,476 88,233 93,037 102,370 96,986
Retained Earnings 658,873 695,427 712,747 729,370 764,645 834,615 870,523 925,007
Acc. Other Income 27,961 24,147 15,218 23,877 30,541 34,460 22,260 9,024
Total Equity $768,030 $802,144 $812,224 $839,390 $884,086 $962,781 $995,827 $1,031,689

Total Liabilities & Shareholders'

Equity $1,098,429 $1,087,296 $1,048,661 $1,079,299 $1,187,436 $1,276,483 $1,274,220 $1,313,634

S/O-Common Stock 67,038 66,502 66,622 66,657 66,733 66,900 67,375 67,234
Total Common Shares
Outstanding 67,038 66,502 66,622 66,657 66,733 66,900 67,375 67,234

Trend Graphs on next page

17 September, 2010 Page 17

 Fossil, Inc. (NASD:FOSL) Reuters ProVestor Plus Company Report

Quarterly Financial Statements

Years are Fiscal Years.
Currency in Thousands of U.S. Dollars. Shares in Thousands.

Balance Sheet Trend Graphs

Bar graphs of specific Balance Sheet items can be used to help in identifying volatility.

Cash and Equivalents Total Liabilities Total Equity Shares Outstanding

Second Quarter 2010 $434,544 $281,945 $1,031,689 67,234
First Quarter 2010 $449,902 $278,393 $995,827 67,375
Fourth Quarter 2009 $405,175 $313,702 $962,781 66,900
Third Quarter 2009 $297,963 $303,350 $884,086 66,733
Second Quarter 2009 $264,090 $239,909 $839,390 66,657
First Quarter 2009 $195,400 $236,437 $812,224 66,622
Fourth Quarter 2008 $172,012 $285,152 $802,144 66,502
Third Quarter 2008 $117,811 $330,399 $768,030 67,038

17 September, 2010 Page 18

 Fossil, Inc. (NASD:FOSL) Reuters ProVestor Plus Company Report

Quarterly Financial Statements

Years are Fiscal Years.
Currency in Thousands of U.S. Dollars.

Quarterly Cash Flow Statement

Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009 Q4 2009 Q1 2010 Q2 2010
39 Weeks 52 Weeks 13 Weeks 26 Weeks 39 Weeks 52 Weeks 13 Weeks 26 Weeks
Oct. 04, 2008 Jan. 03, 2009 Apr. 04, 2009 Jul. 04, 2009 Oct. 03, 2009 Jan. 02, 2010 Apr. 03, 2010 Jul. 03, 2010
Reclassified as of Reclassified as of
Cash From (Used By) Operations Oct. 03, 2009 Jan. 02, 2010
Net Income $95,829 $141,853 $18,496 $35,988 $72,533 $144,294 $37,696 $94,255
Depreciation 27,763 37,642 10,060 20,450 30,272 41,334 10,107 20,036
Deferred Income Tax (1,061) 1,106 2,927 4,802 8,828 3,235 (1,410) 11,754
Loss (gain) on disposal of assets 141 154 35 95 234 618 29 101
Impairment loss 1,116 10,570 NA 900 1,650 5,232 434 2,476
Equity in Affiliate (1,211) (1,562) 2,239 930 719 (449) (412) (687)
Distribution from joint venture NA 955 NA 0 NA 0 4,726 4,726
Stock Based Compensation 5,262 7,253 1,293 3,576 5,223 6,787 1,734 4,500
Excess tax (benefit) expense from
stock- (535) (574) (341) 323 (3) (1,166) (2,395) (2,975)
Allow. Doubt. Accts. 918 3,441 824 1,281 3,036 2,599 (108) (1,273)
Allow. Returns 187 2,406 (3,638) (5,400) (4,139) (557) 1,737 2,138
Accounts Receivable 1,018 17,712 53,219 75,017 25,990 (4,180) 43,264 44,191
Inventories (87,104) (45,558) 4,037 37,715 8,950 44,569 (3,382) (49,946)
Prepaid Exp./Other (10,682) (1,497) 8,773 (3,619) 1,371 8,491 (2,632) (17,670)
Accounts Payable 1,063 (18,756) (25,404) (27,255) 8,117 6,101 (16,322) (15,523)
Accrued Expenses (19,208) (13,351) (27,710) (25,093) (14,799) 1,777 (22,376) 1,108
Taxes Payable 4,886 (32,840) (1,744) (3,387) 5,023 7,303 4,100 (26,563)
Cash from Operating Activities $18,382 $108,954 $43,066 $116,323 $153,005 $265,988 $54,790 $70,648

Plus: Cash From (Used By) Investment Activities

Capital Expenditures ($40,548) ($63,934) ($5,310) ($16,205) ($28,172) ($37,687) ($5,667) ($17,626)
Prop./Equipment Sale NA 791 NA NA NA 76 NA NA
Sales and maturities of securities
avail 6,395 NA NA NA 45 NA NA NA
Sales/maturities of securities
available NA NA 20 20 NA NA 75 151
Purchase of securities available for
sal NA 12,386 (677) (868) NA 938 (150) (302)
Purchase of Securities AFS (1,847) (7,106) NA NA (1,111) (1,237) NA NA
Intangible/Other (13,274) (23,664) (3,017) (3,170) (1,378) (385) (126) (2,371)
Cash from Investing Activities ($49,274) ($81,527) ($8,984) ($20,223) ($30,616) ($38,295) ($5,868) ($20,148)

Plus: Cash From (Used By) Financing Activities

Minority Interest ($4,359) ($6,660) ($2,513) ($2,602) ($2,602) ($2,693) ($2,387) ($4,272)
Excess tax benefit (expense) from
stock- 535 574 341 (323) 3 1,166 2,395 2,975
Issue. Common Stock 4,297 4,909 424 813 1,666 3,756 6,968 9,544
Acquisition of common stock (94,888) (105,873) 0 0 0 0 NA (11,157)
Borrowings on notes payable 0 114,462 NA 1,561 1,900 5,111 37 46
Payments on notes payable (6,209) (120,216) NA NA (3,769) (7,055) NA NA
Payments on notes payable NA NA (69) (3,355) NA NA (67) (221)
Cash from Financing Activities ($100,624) ($112,804) ($1,817) ($3,906) ($2,802) $285 $6,946 ($3,085)

Foreign Exchange Effects ($5,917) $2,145 ($8,877) ($116) $6,364 $5,185 ($11,141) ($18,046)

Equals: Increase (Decrease) In Cash

Net Change in Cash ($137,433) ($83,232) $23,388 $92,078 $125,951 $233,163 $44,727 $29,369

Net Cash - Beginning Balance $255,244 $255,244 $172,012 $172,012 $172,012 $172,012 $405,175 $405,175
Net Cash - Ending Balance 117,811 172,012 195,400 264,090 297,963 405,175 449,902 434,544
Cash Interest Paid NA 569 NA NA NA 443 NA NA
Cash Taxes Paid NA 77,240 NA NA NA 62,957 NA NA

Trend Graphs on next page

17 September, 2010 Page 19

 Fossil, Inc. (NASD:FOSL) Reuters ProVestor Plus Company Report

Quarterly Financial Statements

Years are Fiscal Years.
Currency in Thousands of U.S. Dollars.

Cash Flow Trend Graphs

Bar graphs of specific Cash Flow items can be used to help in identifying volatility.

Cash from Operations Total Capital Expenditures Cash from Financing Net Change in Cash
Second Quarter 2010 (26 Weeks) $70,648 ($17,626) ($3,085) $29,369
First Quarter 2010 (13 Weeks) $54,790 ($5,667) $6,946 $44,727
Fourth Quarter 2009 (52 Weeks) $265,988 ($37,687) $285 $233,163
Third Quarter 2009 (39 Weeks) $153,005 ($28,172) ($2,802) $125,951
Second Quarter 2009 (26 Weeks) $116,323 ($16,205) ($3,906) $92,078
First Quarter 2009 (13 Weeks) $43,066 ($5,310) ($1,817) $23,388
Fourth Quarter 2008 (52 Weeks) $108,954 ($63,934) ($112,804) ($83,232)
Third Quarter 2008 (39 Weeks) $18,382 ($40,548) ($100,624) ($137,433)

Reuters Helpdesk: Toll Free: 1-800-721-2225, International: 1-646-836-5180, rr.support@reuters.com

17 September, 2010 Page 20