Fossil Group Inc (NASDAQ:FOSL)
Who would think that a familiar-named retail company, which is 86% owned by institutions, employs 14500 people, that has been as high as $36.87 and as low as $8.98, and has a short interest ratio of 25%- would trade down today in the aftermarket session after they reported horrendous earnings.
To give you an idea as to how traumatic this is to the share price, shares were currently trading at $12 per share, which is closer to the 52-week low than the 52-week high.
This comes amid reports that apple has been inflicting some major sales damage to Fossil’s bottom line as they compete in the wrist-watch arena.
The Numbers
Fossil reported a second-quarter loss of $7.11 per share Which equals a loss of 345 million dollars. To give you some perspective on just how bad this is- the company earned about $6 million dollars which is $.12 cents per share in the same quarter a year earlier.
Some Interesting Fossil Facts
1-Fossil makes licensed accessories for brands such as Adidas (DE:ADSGN); Emporio Armani; Karl Lagerfeld; Michael Kors; Marc by Marc Jacobs; Burberry; DKNY; Diesel; and Armani Exchange.
2-The company name represents the nickname the brothers had for their father (Fossil).
3-Fossil was founded in 1984 as Overseas Products International by Tom Kartsotis, a former Texas A&M University student living in Dallas from a suggestion by his older brother, Kosta Kartsotis, a merchandising executive at Sanger-Harris.
4-Fossil had its initial public offering in 1993
The Charts
Above is the daily price chart going back to the beginning of 2017. It is interesting in that today’s closing price action has it above the red resistance trend line-however, now since earnings have been released, shares will have broken back down below the trend line and many investors will be watching this one closely to see which side of that trend line holds true.
The above price chart shows the one minute candle bars in the after market trading session. It is easy to see just when the earnings were announced and when it began its red bar descent in price.
Company Comments
Chief Financial Officer Dennis Secor is leaving the company. “He has decided to relocate back to California for personal reasons,” Jeffrey Boyer, a board member who previously served as CFO at Pier 1 Imports Inc., will take over the role.
“We operate in a market and retail environment experiencing unprecedented disruption,” Chief Executive Officer Kosta Kartsotis said in a statement.
Company Profile
Fossil Group, Inc., together with its subsidiaries, designs, develops, markets, and distributes consumer fashion accessories.
The company’s principal products include a line of men’s and women’s fashion watches and jewelry, handbags, small leather goods, belts, sunglasses, and soft accessories.
It offers its products under its proprietary brands, such as FOSSIL, MICHELE, MISFIT, RELIC, SKAGEN, and ZODIAC, as well as under the licensed brands, including Adidas AG (DE:ADSGN), ARMANI EXCHANGE, Burberry Group PLC (LON:BRBY), CHAPS, DIESEL, DKNY, EMPORIO ARMANI, KARL LAGERFELD, KATE SPADE NEW YORK, MARC JACOBS, Michael Kors Holdings Limited (NYSE:KORS), and TORY BURCH.
The company sells its products through department stores, specialty retail stores, specialty watch and jewelry 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 December 31, 2016, it owned and operated 94 retail stores and 129 outlet stores located in the United States, as well as 230 retail stores and 132 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.