Agenda-setting intelligence, analysis and advice for the global fashion community.
TEXAS, United States — Shares of Fossil Group fell Wednesday following weak quarterly revenue results and a disappointing outlook as a stronger dollar continues to cut into company's financial results.
The stock fell $8.32, or 9.6 percent, to $78.14 by midday Wednesday. Earlier in the day, shares fell to $76.40, their lowest point in about two years.
The designer of watches, jewelry and clothing saw profit fall 42 percent to $38.1 million, or 75 cents per share, while revenue fell 7 percent to $725 million. While profit beat Wall Street expectations, revenue fell short.
The Richardson, Texas-based company also dropped the lower end of its prior guidance and now expects full-year profit between $5.25 and $6.05 per share on a revenue dip between 4 percent and 1 percent.
ADVERTISEMENT
A stronger dollar has been cutting into the bottom line of companies with a large bulk of international business. Fossil expects the stronger dollar to continue negatively impacting sales and profit throughout the year.
Analysts maintained a mostly positive view for the company, but warned there are signs of a slowdown in business. Meanwhile, the full impact of The Apple Watch is still unknown, with analysts mixed on the actual threat to traditional watchmakers.
