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. 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, 12:48 PM
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, 9:14 AM
Thu, Nov. 12, 5:44 PM
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.
Wed, Aug. 12, 9:13 AM
Tue, Aug. 11, 5:38 PM
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, 10:00 AM
- The currency devaluation fired off in China is hitting select consumer goods and services stocks.
- China Southern Airlines (ZNH -18.2%) and China Eastern Airlines (CEA -17.4%) are feeling the sharpest impact.
- Macau gaming stocks trade weaker with Melco Crown (MPEL -2.7%), Las Vegas Sands (LVS -2%), Wynn Resorts (WYNN -3.1%), and MGM Resorts (MGM -0.8%) all lower.
- Luxury retailers are also feeling a pinch due to the F/X headache. Decliners include Tiffany (TIF -2.1%), Ralph Lauren (RL -1.3%), Gucci (OTC:PPRUF, OTCPK:PPRUY), Prada (OTCPK:PRDSF), Hermes (OTCPK:HESAF), Fossil (FOSL -1.5%), Michael Kors (KORS -0.6%), Coach (COH -1.7%), Movado (MOV -1.8%), Kering (OTC:PPRUF), Burberry (OTCPK:BURBY), and Swatch (OTCPK:SWGAY -5.4%).
Thu, Jul. 16, 10:12 AM
- Some popular momentum-driven retail stocks are starting off the day in reverse with Michael Kors (KORS -2.7%), Coach (COH -0.2%), Pacific Sunwear (PSUN -1.9%), Vera Bradley (VRA -3.3%), Fossil (FOSL -0.6%), Lululemon (LULU -0.6%), Kate Spade (KATE -0.4%) and Under Armour (UA -3.5%) all lower.
- While OTR Global is with a fresh note on UA and KORS in which expectations are reeled in, pricing trends and China are also looming over the sector.
Wed, May 27, 10:07 AM
- Select high-end retailers are trading weaker after reports from Michael Kors and Movado rattle the sector.
- Though Tiffany is ripping up a double-digit gain on the day, analysts note the earnings beat came off of a lowered bar.
- Decliners: Fossil (NASDAQ:FOSL) -5.3%, Kate Spade (NYSE:KATE) -1.9%, Vera Bradley (NASDAQ:VRA) -1.9%, Tum Huldings (NYSE:TUMI) -1.0%, Guess (NYSE:GES) -0.3%, Coach -5.5%.
- The PowerShares Dynamic Leisure and Entertainment ETF (NYSEARCA:PEJ) is slightly trailing broader market averages.
- Previously: F/X clips results at Movado
- Previously: Light guidance from Michael Kors
Wed, May 13, 10:15 AM
- Weak guidance issued from Ralph Lauren (RL -2.2%) is having a ripple effect on some high-end retail stocks.
- Issues with merchandising, F/X pressure, and lower demand from international tourism pestered Ralph Lauren in Q1 and could continue to be a theme looking forward.
- Previously: Polo Ralph Lauren beats by $0.09, beats on revenue (May. 13 2015)
- Previously: More on Ralph Lauren's FQ4 (May. 13 2015)
- Michael Kors (KORS -1.3%), Coach (COH -0.4%), Movado (MOV -0.5%), Fossil (FOSL -1.7%), and Vera Bradley (VRA -0.3%) are all lower than market averages.
Wed, May 6, 7:58 AM
- Fossil (NASDAQ:FOSL) is downgraded by Cowen to a Market Perform rating from Outperform after yesterday's Q1 report.
- The low end of the wide EPS guidance range set by Fossil has raised some concerns.
- Previously: Fossil beats by $0.11, misses on revenue (May. 05 2015)
- Previously: Fossil tops profit expectations in challenging quarter (May. 05 2015)
- FOSL -1.0% premarket to $85.60.
Tue, May 5, 4:34 PM
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.
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