Fossil Group, Inc. Enjoys Rapid Growth In Early 2016

Fossil Group, Inc., 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, soft accessories, and selected apparel. Fossil Group owns and operates 153 retail stores and 143 outlet stores located in the United States, as well as 197 retail stores and 100 outlet stores internationally, in addition to a multitude of other sources of distribution. The company is headquartered in Richardson, Texas.

The company looks to break into wearable tech industry following sharp upturns in early 2016.

Fossil Group, Inc. released earnings reports for the fourth quarter of 2015 recently, bringing joy to investors. The earnings report revealed $992.5 million in revenue for 4Q15 while analysts expected revenues of only $928.2. Analyst expectations were lowered following the weak first three-quarters that the company saw in 2015. Still, investors can enjoy the growth after a long period of declining stock prices.

After such a successful quarter, the company is pointing to growth from the Fossil, Skagen, Michael Kors, and Kate Spade brands. Additionally, the launch of a new website led to double-digit growth in their e-commerce channel. Now, looking forward, the company is hoping to further develop and expand their use of technology, more specifically, by introducing wearable technology. This wearable tech is not expected to have a large impact on share prices until the second half of 2016.

Analysts are less optimistic that smartwatches are the answer to continuing growth for this company. Some note that there is immense smartwatch competition from Apple, Inc. (NYSE:AAPL) and that the market in North America is slowing down. Overall, analysts from Market Realist feel that investors should hold here on the stock with only 3 out of 15 recommending that investors sell their shares and 2 out of 15 giving a buy recommendation.