According to Zacks, “Fossil has lagged the industry in the past three months owing to its dismal top line trend, which lingered in the fourth quarter of 2018. Both top and bottom lines lagged estimates and sales declined thanks to soft traditional watch sales and weakness in leather and jewelry categories. Sales were hit by currency woes, along with certain business and licensed brand exits. These hurdles, along with supply-chain hurdles in the connected products are expected to linger in 2019, wherein sales are likely to fall 7-12%. Nonetheless, the company is getting cushioned from strength in wearables category. Fossil has been undertaking solid strides in this space, highlighted by its recent deals with Qualcomm and Google. These efforts yielded in the fourth quarter, wherein connected watch sales formed about 21% of the company’s top line. Also, the company’s New World Fossil plan facilitated cost reduction and margin expansion.”
Several other research firms have also commented on FOSL. BidaskClub raised shares of Fossil Group from a hold rating to a buy rating in a report on Wednesday, January 9th. ValuEngine raised shares of Fossil Group from a sell rating to a hold rating in a research note on Wednesday, January 2nd. Wells Fargo & Co dropped their price target on shares of Fossil Group from $14.00 to $8.00 and set an underperform rating for the company in a research note on Thursday, February 14th. Finally, Telsey Advisory Group reaffirmed a market perform rating and set a $17.00 price objective (down previously from $20.00) on shares of Fossil Group in a research report on Friday, February 8th. Two analysts have rated the stock with a sell rating, three have given a hold rating and one has issued a buy rating to the stock. The company presently has an average rating of Hold and a consensus target price of $20.00.
Fossil Group (NASDAQ:FOSL) last issued its quarterly earnings data on Wednesday, February 13th. The accessories brand company reported $1.01 EPS for the quarter, missing analysts’ consensus estimates of $1.27 by ($0.26). The business had revenue of $786.90 million during the quarter, compared to the consensus estimate of $805.17 million. Fossil Group had a positive return on equity of 3.86% and a negative net margin of 0.14%. The business’s quarterly revenue was down 14.6% on a year-over-year basis. During the same period last year, the firm earned $0.64 EPS. On average, sell-side analysts predict that Fossil Group will post 0.64 EPS for the current fiscal year.
In other Fossil Group news, insider Gregory A. Mckelvey sold 249,940 shares of the firm’s stock in a transaction on Wednesday, February 20th. The shares were sold at an average price of $14.64, for a total transaction of $3,659,121.60. The sale was disclosed in a filing with the SEC, which is available through this hyperlink. Also, Chairman Kosta N. Kartsotis sold 50,000 shares of the firm’s stock in a transaction on Friday, March 1st. The stock was sold at an average price of $15.92, for a total transaction of $796,000.00. The disclosure for this sale can be found here. 8.20% of the stock is owned by company insiders.
Institutional investors have recently modified their holdings of the business. Morgan Stanley grew its position in Fossil Group by 364.8% during the 3rd quarter. Morgan Stanley now owns 1,391,269 shares of the accessories brand company’s stock worth $32,389,000 after purchasing an additional 1,091,931 shares during the last quarter. First Trust Advisors LP purchased a new stake in shares of Fossil Group in the fourth quarter valued at about $2,315,000. Vanguard Group Inc boosted its holdings in shares of Fossil Group by 28.7% in the third quarter. Vanguard Group Inc now owns 5,542,764 shares of the accessories brand company’s stock valued at $129,035,000 after acquiring an additional 1,235,339 shares in the last quarter. Palo Capital Inc. purchased a new stake in shares of Fossil Group in the third quarter valued at about $156,000. Finally, Triad Investment Management boosted its holdings in shares of Fossil Group by 0.6% in the first quarter. Triad Investment Management now owns 147,505 shares of the accessories brand company’s stock valued at $2,024,000 after acquiring an additional 838 shares in the last quarter. 89.08% of the stock is currently owned by institutional investors.
About Fossil Group
Fossil Group, Inc designs, develops, markets, and distributes consumer fashion accessories in the United States, Europe, Asia, and internationally. Its principal products include men's and women's fashion watches and jewelry, smartwatches, handbags, small leather goods, belts, and sunglasses.
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