Is Fossil Group Inc (FOSL) On Time for Spring?

Fossil

Do you know what time it is? Maybe, it’s time to grab a new watch from Fossil (FOSL)? However, Fossil Group Inc (NASDAQ:FOSL) is not on the top of every analyst’s list.

Fossil in the News

Fossil Group Inc (NASDAQ:FOSL), the American designer and manufacturer of clothing and accessories, reported its latest earnings data last Tuesday, beating most consensus estimates. The company reported revenue of $776.50 million, beating the Street estimate of $771.55. Fossil also reported that their revenue was up 14.1% year-over-year. However, the company also noted that its global comparable sales fell for another third straight quarter and that domestic interest is fading. Like many retailers, Fossil is still recovering from the decrease in activity over the winter. But, it seems that the company is falling behind other retailers such as Kate Spade (KATE) and Michael Kors (KORS), who are revealing stronger sales numbers.

What Does This Mean For Fossil’s Stock

Cowen analyst John Kernan recommended BUY Fossil last week, shortly following the report. Kernan noted the, “global growth story keeps on ticking” for Fossil Group Inc (NASDAQ:FOSL). Wholesale watch sales in both Europe and Asia reached double-digits in the first quarter, so Kernan is not worried about the dip in overall global sales now. Kernan has a -3.4% average return per recommendation.

 FOSL_Eric Beder_John Kernan Fossil

On the other hand, Brean Capital analyst Eric Beder did raise his Fossil rating from SELL to HOLD, however, he is not confident in the watch game. Beder argued, “Watches come in and out as fashion accessories. We are low in the watch cycle. Handbags are more exciting.” Beder has an average return of +8.0% on the stock, and an overall average return of 7.3% per recommendation.

Conclusion

Retail is slowly bouncing back from last season, but it seems that watches are not on the top of everyone’s shopping list this spring.

Via: tipranks

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About the Author

TipRanks
TipRanks was founded in 2012 with the goal of giving power back to the individual investor. Our hope is that by making analyst performance data easily available and highly visible to the investing public, TipRanks will not just help save others from our investing mistakes, but will also bring back accountability, objectivity, and transparency to the business of stock picking and analyst reports. TipRanks is proudly unaffiliated with any investment firm.

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