Fossil Group Inc. (NASDAQ: FOSL)
On Thursday, November 12th 2015, Fossil reported earnings after the market closed. The American based multinational corporation which caters to all age groups in the fashion industry reported results that disappointed analysts, investors, and long term shareholders when they reported weaker than expected quarterly sales, lowered forward guidance, and the announcement of an acquisition (Misfit, for over $250 million dollars) which will further dilute the Company’s value per outstanding share.
FOSL Market Reaction
When the dust settled in after market trading, shares of FOSL had closed down over 15% at $43.07, or down -$7.94 from the regular market close. Shares traded in heavy action and the selloff was fast and furious soon after the company numbers were reported. Below, you will see a chart showing that on the one minute price chart with long red bars showing the massive sell off.
Fossil Group Inc., Company Comments
Kosta Kartsotis, Chief Executive Officer, noted:
“While our results for the third quarter were within our expectations, we are not satisfied with our overall performance. Currency aside, our Skagen and Fossil brands performed well in a challenging environment as our initiatives in branding and innovation resonated with consumers around the world. Our branded jewelry and leathers business increased but were more than offset by a decline in our watch business, reflecting general weakness in the category.”– YahooFinance (Zacks)
Fossil Group, Inc., together with its subsidiaries, designs, develops, markets, and distributes consumer fashion accessories. The company operates through four segments: North America Wholesale, Europe Wholesale, Asia Pacific Wholesale, and Direct to Consumer. The company’s principal products include a line of men’s and women’s fashion watches and jewelry, handbags, small leather goods, belts, sunglasses, soft accessories, and selected apparel. It offers its products under its proprietary brands, such as FOSSIL, MICHELE, RELIC, SKAGEN, and ZODIAC, as well as under the licensed brands, including ADIDAS, ARMANI EXCHANGE, BURBERRY, DIESEL, DKNY, EMPORIO ARMANI, KARL LAGERFELD, MARC BY MARC JACOBS, MICHAEL KORS, and TORY BURCH. The company sells its products through department stores, specialty retail stores, specialty watch and jewelry stores, company-owned retail and outlet stores, mass market stores, e-commerce sites, licensed and franchised FOSSIL retail stores, and retail concessions, as well as sells its products on airlines and cruise ships. As of January 3, 2015, it owned and operated 153 retail stores and 143 outlet stores located in the United States, as well as 197 retail stores and 100 outlet stores internationally. The company was formerly known as Fossil, Inc. and changed its name to Fossil Group, Inc. in May 2013. Fossil Group, Inc. was founded in 1984 and is headquartered in Richardson, Texas. -FinancialJuice