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Fossil, Inc. (FOSL)

  • Fri, Nov. 20, 11:47 AM
    • The S&P Retail ETF (NYSEARCA:XRT) is up 1.9% with apparel and footwear stocks doing much of the heavy lifting.
    • A vibrant rally in sports stocks was sparked by earnings reports and Nike. Iconix Brand (ICON +2.5%), G-III Apparel (GIII +3%), DSW (DSW +3.7%), Finish Line (FINL +3.1%), Caleres (CAL +2.2%), Genesco (GCO +3.5%), and Shoe Carnival (SCVL +1.7%) join the list reported on earlier.
    • Luxury names are on the move with Kate Spade (KATE +2%), Fossil (FOSL +2.9%), Coach (COH +1.4%), and Movado (MOV +2.7%) higher.
    • The beat-up mall retailer group is also recovering after results from Gap (GPS +6%) and Abercrombie & Fitch (ANF +19.4%) topped worst-case scenarios. American Eagle Outfitters (AEO +2.3%), Guess (GES +4.6%), and Pacific Sunwear (PSUN +5.4%) are notable gainers.
    • Big box retailers are the laggards today. Wal-Mart, Target (TGT +0.6%), and Costco (COST +0.6%) are right at market index averages.
    | Fri, Nov. 20, 11:47 AM | 2 Comments
  • Fri, Nov. 13, 2:32 PM
    • Fossil (FOSL -34.6%) shares lose a third of their value after the company’s mixed Q3 results and reduction in its earnings and revenue estimates for Q4 and FY 2016, noting "general weakness" in its watch business.
    • Investors are not appeased by the $260M acquisition of Misfit Inc., which will provide FOSL with fitness and sleep-tracking wrist devices, but the products will take a while to have an impact on results.
    • FOSL already had introduced its version of a smartwatch to attempt to combat pressure from wearable tech competitors, but the deal with Misfit may signal that the Android-run Fossil Q may not be working out as the company had hoped.
    • Several analysts sharply lower their price targets on the shares: Cowen cuts its target to $42 from $51, BofA Merrill slashes its target to $33 from $51, and Piper Jaffray slices its price to $25 from $46.
    | Fri, Nov. 13, 2:32 PM | 1 Comment
  • Fri, Nov. 13, 12:48 PM
    | Fri, Nov. 13, 12:48 PM | Comment!
  • Fri, Nov. 13, 9:36 AM
    • Along with its Q3 results, watch/handbag maker Fossil (FOSL -29%) is buying fashion-oriented activity tracker maker Misfit for $260M. Fitbit (NYSE:FIT) has fallen below $30 in response.
    • Fossil, which did 2014 sales of $3.5B, plans to "scale Misfit's technology across Fossil, Skagen and a targeted portion of its portfolio of 16 brands in 2016," and declares the purchase will "expand its addressable market with new distribution channels, new products, new brands and new enterprise partnerships, including music, fitness, healthcare and digital entities."
    • Misfit CEO Sonny Vu will become the president and CTO of Fossil's connected devices unit. Fossil will finance the purchase using both cash and debt. (Misfit's products)
    • Fossil/Misfit faces competition not only from Fitbit, but also Nike (FuelBand), Apple (Watch), Samsung (Gear), Jawbone, Xiaomi, and others. IDC estimates Fitbit had 24.3% of the Q2 wearables market, Apple 19.9%, Xiaomi 17.1%, and no one else more than 4%. Industry shipments rose an estimated 223% Y/Y to 18.1M.
    • Fossil has nosedived in response to its Q3 sales miss and soft Q4 guidance. Oppenheimer has downgraded to Market Perform.
    • Update: Fitbit has also downsized its planned secondary offering to 17M shares, and priced it at $29.
    | Fri, Nov. 13, 9:36 AM | 12 Comments
  • Fri, Nov. 13, 9:14 AM
    | Fri, Nov. 13, 9:14 AM | Comment!
  • Thu, Nov. 12, 5:44 PM
    • Top gainers, as of 5.25 p.m.: SYT +16.0%. USAT +15.9%. FLO +13.1%. PLNT +11.0%. DAR +8.2%.
    • Top losers, as of 5.25p.m.: JWN -20.1%. FOSL -15.2%. LOCO -7.6%. INSY -7.2%. TAHO -6.8%.
    | Thu, Nov. 12, 5:44 PM | 4 Comments
  • Thu, Nov. 12, 4:47 PM
    • Fossil (NASDAQ:FOSL) -12.8% AH after reporting weaker than expected Q3 revenues and issuing downside guidance for the rest of the year.
    • FOSL says it now sees Q4 EPS of $1.05-$1.65, well below the $2.14 analyst consensus estimate, and expects Q4 revenues to decrease by 7%-16% with operating margins in the range of 8.5%-11.5%.
    • For the full year, FOSL cuts its EPS outlook to $4.15-$4.75 and expects a 8%-10.5% decline in net sales, from its previous estimate for EPS of $4.80-$5.60 and a 4%-8% net sales decrease.
    • In Q3, FOSL says its watch sales fell 17%, or 11% excluding currency fluctuations, and global sales at stores open more than a year fell 1% Y/Y.
    • FOSL also says it agrees to acquire startup Misfit, a maker of wearable fitness trackers, for $260M, in a move the company hopes will help reinvigorate its product offerings.
    | Thu, Nov. 12, 4:47 PM | Comment!
  • Thu, Nov. 12, 4:08 PM
    • Fossil (NASDAQ:FOSL): Q3 EPS of $1.19 beats by $0.06.
    • Revenue of $771.3M (-13.8% Y/Y) misses by $23.06M.
    • Shares -11.78%.
    • Press Release
    | Thu, Nov. 12, 4:08 PM | 1 Comment
  • Wed, Nov. 11, 5:35 PM
  • Mon, Oct. 5, 7:20 AM
    • Piper Jaffray stays wary of Fossil Group (NASDAQ:FOSL) on concerns over the traditional watch market.
    • "We see gross margin pressure further ensuing into FY16 as competition in the wearable space unfolds," reads the PJ note.
    • Shares of Fossil are reiterated with an Underweight rating by Piper and assigned a price target of $46 vs. the $55.38 close on Friday.
    | Mon, Oct. 5, 7:20 AM | Comment!
  • Wed, Sep. 16, 7:03 PM
    • J.P. Morgan analysts warn that companies with large amounts of floating-rate debt - including Chesapeake Energy, Freeport McMoRan, Ford and GE - could be at risk if the Fed decides to raise interest rates.
    • Companies with variable/floating-rate debt suffer a more immediate impact by a rate hike than companies with fixed-rate debt, the analysts say; variable-rate coupons typically reset quarterly, meaning that changes in the base rate flow through almost immediately to variable-rate borrowers, while fixed-rate borrowers do not see such an impact until they refinance or issue new debt.
    • JPM lists 25 companies - not including financials - that have the “highest variable-rate debt as a percentage of market cap": FMC, NRG, FCX, AES, CVC, LVLT, PVH, CHK, FE, DVA, THC, OI, CNX, F, HCA, FOSL, RCL, JOY, GE, ADS, ALLE, HBI, GT, DNB, AN
    | Wed, Sep. 16, 7:03 PM | 66 Comments
  • Wed, Aug. 12, 10:16 AM
    • Luxury retail stocks are off to a poor start again after Fossil (FOSL -2.1%) reported last night and with increased concerns over China.
    • Analysts note it's not just sales in China which are at risk of lower F/X conversion rates, but European luxury sales could dip to due to the reliance of heavy buying (high average transaction prices) from Asian tourists.
    • Luxury slumpers today include Movado (MOV -2.7%), Coach (COH -4.8%), Kate Spade (KATE -4.1%), Tiffany (TIF -4.3%), Luxottica (LUX -3.6%), Ralph Lauren (RL -2.2%), Michael Kors (KORS -4.1%), and Guess (GES -2.9%).
    • Previously: Fossil beats by $0.30, misses on revenue (Aug. 11 2015)
    • Previously: Mixed results for Fossil in Q2, shares -4% AH (Aug. 11 2015)
    | Wed, Aug. 12, 10:16 AM | 2 Comments
  • Wed, Aug. 12, 9:13 AM
    | Wed, Aug. 12, 9:13 AM | Comment!
  • Tue, Aug. 11, 5:38 PM
    | Tue, Aug. 11, 5:38 PM | 4 Comments
  • Tue, Aug. 11, 4:29 PM
    • Fossil (NASDAQ:FOSL) reports sales in the Americas rose 1% (+2% constant currency) in Q2.
    • Sales in Europe fell 12% (+2% constant currency).
    • Asia saw a 6% sales decline (+1% constant currency) during the month.
    • F/X played a positive factor in lowering some operating expenses for the company, while pricing initiatives also helped the bottom line.
    • Guidance: Sales growth of -1% to +3% expected. Adjusted EPS of $6.20-$7.00 seen.
    • Previously: Fossil beats by $0.30, misses on revenue (Aug. 11 2015)
    • FOSL -4.1% in after-hours trading after an initial post-earnings rally.
    | Tue, Aug. 11, 4:29 PM | Comment!
  • Tue, Aug. 11, 4:04 PM
    • Fossil (NASDAQ:FOSL): Q2 EPS of $1.12 beats by $0.30.
    • Revenue of $740M (-4.4% Y/Y) misses by $10.35M.
    • Press Release
    | Tue, Aug. 11, 4:04 PM | Comment!
Company Description
Fossil Group Inc is a design, marketing and distribution company of consumer fashion accessories. It offers men's and women's fashion watches and jewelry, handbags, small leather goods, belts, sunglasses, soft accessories and select apparel.