Dec. 23, 2014, 2:59 PM
- The strong reads on consumer spending (ICSC, Redbook) bode well for Q4 earnings in the retail sector, note analysts.
- Electronics sellers (BBY, HGG) and the luxury sector (RL, TIF, COH, KORS, KATE, FOSL, VRA) are viewed as being in a good position to see a December boost.
- Companies which eased off on pulling a bulk of their sales forward with Black Friday/Cyber Monday deals are also seen as potential winners with sub-$2 gas resetting some holiday budgets.
- Though e-commerce is expected to dazzle again this holiday season. It's not all fun and games for analysts looking at margins. The extension by Amazon (AMZN -0.1%) of its free shipping offer could be a signal that inventory levels are higher than anticipated and that the growth-at-all-costs mentality at the company is as entrenched as ever, notes Nasdaq Advisory Services.
- The S&P Retail ETF (NYSEARCA:XRT) has doubled up the return of the S&P 500 over the last 3 months, 10.8% vs. 5.1%.
- Previously: Retail trends to watch: Athleisure, P-E buyouts, and new online channels (Dec. 20 2014)
- Related ETFs: XLP, XLY, VDC,VCR, RTH, RETL, FXG, PBJ, IYK, PEJ, FXD, IYC, FDIS, RHS, SCC, FSTA, UCC, PMR, PSL, UGE, RCD, PEZ, PSCC, PSCD, SZK
Nov. 12, 2014, 10:37 AM
- Select high-end retailers are in rally mode after Fossil (FOSL +7.3%) cruises past Q3 estimates.
- The strong demand that Fossil saw for higher-priced items bodes well for the sector, say analysts.
- Advancers: Movado (NYSE:MOV) +1.1%, Michael Kors (NYSE:KORS) +1.6%, Coach (NYSE:COH) +1.6%, Vera Bradley (NASDAQ:VRA) +1.1%.
Nov. 12, 2014, 9:18 AM
Nov. 11, 2014, 5:38 PM
Nov. 11, 2014, 4:16 PM
- Fossil (NASDAQ:FOSL) reports wholesale revenue was up 10% Y/Y to $678M in Q3.
- Direct to consumer sales rose 11% to $216.5M.
- Gross margin rate -50 bps to 56.9% due to a higher level of promotions in the outlet channel.
- Operating income rate -10 bps to 17.3%.
- Jewelry sales rose 23% Y/Y, while sales of watches were up 12%.
- Guidance: Full year sales growth of 8.5% to 9.5% expected and EPS of $7.00-$7.30 vs. $7.15 consensus.
- FOSL +10.0% AH.
Nov. 11, 2014, 4:12 PM
Nov. 10, 2014, 5:35 PM
Oct. 23, 2014, 10:02 AM
Sep. 16, 2014, 12:58 PM
- Fossil (FOSL -0.6%) has been identified by Barclays as the watch seller that could feel the sharpest sting by Apple's entry into the wearable technology business with the Apple Watch.
- Though Fossil is developing products in tandem with Intel, it faces an "uphill battle" to gain credibility, notes Barclays.
Sep. 9, 2014, 9:23 AM
- A large patch of the retail sector will have their ears perked up this afternoon to see what Apple (NASDAQ:AAPL) delivers up with its iWatch announcement or teaser.
- Though the company's entry into wearable technology is considered nearly a certainty, the unknown variable is if the product will end up falling under the "gadget" category or be another Apple device revolution.
- Computerworld's Mike Egan is in the latter camp: "The iWatch should be most comparable to the Mac and the iPhone, Apple's two most stunning revolution."
- Forrester Research isn't waiting for details, forecasting 10M iWatch sales by 2016 - a mark which could dent demand for high-end watches.
- Showtime is 1:00 pm ET. (webcast)
- Luxury watchmakers: Movado (NYSE:MOV), Fossil (NASDAQ:FOSL), Swatch (OTCPK:SWGAY), Tiffany (NYSE:TIF), Richemont (OTCPK:CFRUY), LVMH Moet Hennessy (OTCPK:LVMHF), Hermes (OTCPK:HESAF)
- Wearable technology players: Sony (NYSE:SNE), Nike (NYSE:NKE), Samsung (OTC:SSNLF, OTC:SSNGY), Garmin (NASDAQ:GRMN), Basis (NASDAQ:INTC), Fitbit, Jawbone, Adidas (OTCQX:ADDYY), Under Armour (NYSE:UA).
Aug. 12, 2014, 4:07 PM
Aug. 12, 2014, 4:03 PM
Aug. 11, 2014, 5:35 PM
May. 14, 2014, 9:08 AM
May. 13, 2014, 5:40 PM
May. 13, 2014, 5:21 PM
- Fossil (FOSL) -5.1% AH after Q1 earnings declined 8.2% Y/Y, as higher operating expenses more than offset sales growth in its watch market.
- Q1 revenues hit the high end of company guidance by jumping 14% to $776.5M, driven by growth in sales of watches and jewelry, but operating expenses climbed 19% to $338.5M; sees continued higher expenses in 2014 and views this year as a transition to investing in infrastructure to investment in areas that will fuel growth.
- Retail same-store sales fell 2.4% Y/Y, as a decline in North America largely was driven by a drop in mall traffic, while direct-to-customer sales rose 18%.
- Issues downside guidance for Q2, seeing EPS of $0.90-$0.97 vs. $1.17 analyst consensus estimate and revenue growth of 8%-9.5% ($762M-$832M) vs. $774M consensus.
- Issues downside guidance for FY 2014, seeing EPS of $6.90-$7.30 vs. $7.22 consensus while reiterating revenue growth guidance of 8%-10% ($3.52B-$3.58B) vs. $3.58B consensus.
FOSL vs. ETF Alternatives
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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