Fossil Group, Inc. (NASDAQ:FOSL) Disappoints and Shares See 2009 Levels

Fossil Group, Inc. (NASDAQ:FOSL)

Fossil Group, Inc. (NASDAQ:FOSL) shares traded over 14 times their normal daily average volume and suffered a 15% drop in price on the back of the company’s earnings release. In 2014, shares of the fashion designer were trading over $120, today they ended below $20 – a $100 drop in three years. FOSL was last trading at these levels in early 2009.

Fossil Group, Inc. (NASDAQ:FOSL) sells its products through department stores, specialty retail stores, specialty watch and jewelry stores, company-owned retail and outlet stores, mass market stores, e-commerce sites, licensed and franchised Fossil retail stores, as well as on airlines and cruise ships. As of January 2, 2016, it owned and operated 99 retail stores and 139 outlet stores located in the United States, as well as 250 retail stores and 131 out-let stores internationally. Fossil Group, Inc. (NASDAQ:FOSL) was founded in 1984 and is headquartered in Richardson, Texas.

The street sales estimate was $977 million – the company posted $959 million which represented a decline of 3% compared to the previous year. Fossil Group, Inc. (NASDAQ:FOSL) reported earnings per share of $1.36, adjusted for restructuring and other costs, which was above the $1.18 consensus estimate. Of some concern was the company’s guidance for 2017. Fossil Group, Inc. (NASDAQ:FOSL) expects 2017 net sales to check between flat and a 6.5% decline, and earnings per share to be between a loss of $0.50 and a gain of $0.20 per share.

Fossil Group, Inc. (NASDAQ:FOSL) has been buying back shares for a while. In 2012 there were 63.3 million shares outstanding but by 2016 there were only 48.8 million. This was part of a good combination as sales and EPS both were showing uptrends between 2012 and 2015. However in 2015 Fossil Group, Inc. (NASDAQ:FOSL) posted sales of $3.23 Billion ($280 million less than 2015) and EPS decreased from $7.12 in 2015 to $4.52 in 2016. In the past week two analysts have downgraded the ratings of Fossil Group, Inc. (NASDAQ:FOSL) to “Underperform”.

I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 96 hours. All information, or data, is provided with no guarantees of accuracy.

2/15/2017
Ticker Symbol FOSL
Last Price a/o 7:28 PM EST  $                    19.44
Average Volume                1,240,000
Market Cap (mlns)  $                  955.30
Sales (mlns) $3,080.00
Shares Outstanding (mlns) 49.04
Share Float (mlns) 42.26
Shortable Yes
Optionable Yes
Inside Ownership 10.50%
Short Float 20.15%
Short Interest Ratio 6.85
Quarterly Return -42.23%
YTD Return -24.67%
Year Return -56.03%