Euro jitters vexed global stock markets Tuesday, but Fossil Inc. took a direct hit after it warned of first-quarter sluggishness in Europe and cut its annual profit outlook.Shares of the accessories and watch vendor fell 37.6 percent to $78.52 as the S&P Retail Index declined 1.1 percent, or 6.75 points, to 629.44 and the Dow Jones Industrial Average slipped back below 13,000, falling 0.6 percent, or 76.44 points, to 12,932.09. Kosta Kartsotis, Fossil’s chairman and chief executive officer, admitted to analysts on a conference call that the firm was “not firing on all cylinders” in the first quarter.Fossil lowered its full-year earnings guidance to between $5.30 and $5.40 a share, down from the $5.40 to $5.50 it projected earlier. Skagen Designs Ltd., acquired in January, is expected to boost annual earnings by 22 cents a share, a benefit partially offset by transaction costs of 15 cents a share. Wall Street was looking for earnings per share of $5.56. “Continued weak economic conditions in Europe and parts of Asia, as well as the resultant impact of certain product line adjustment were magnified in what is historically our lowest sales quarter of the year,” Kartsotis said. “While certain geographies are feeling economic pressure, there continues to be strong interest in watches and accessories and considerable white space for us to pursue across our product categories.”Kartsotis remained optimistic about the firm’s jewelry collections, which include lines from Michael Kors and Skagen. Fossil said it expects to reach $30 million in sales this year from Kors jewelry alone. For the first quarter ended March 31, Fossil posted a 5.2 percent increase in net income to $61.1 million, or 93 cents a diluted share — 1 cent higher than analysts expected. Quarterly sales increased 9.8 percent to $589.5 million. Fossil’s troubles reverberated in shares of Michael Kors Holdings, which fell 5.3 percent to $41.75, and Movado Group Inc., down 9.7 percent to $25.61. In Europe, investors cautiously eyed France’s new antiausterity president, François Hollande, and worried anew that Greece could tear up its bailout deal with the European Union.The CAC 40 in Paris led the slide, falling 2.8 percent to 3,124.80, followed by the FTSE MIB in Milan, which was down 2.4 percent to close at 13,936.70. The DAX in Frankfurt sank 1.9 percent to 6,444.74, while the FTSE 100 in London retreated 1.8 percent to 5,554.55.The decliners included Hugo Boss, which tumbled 4.1 percent to 79.13 euros; Burberry Group, 3.8 percent to 14.27 pounds; Luxottica Group, 4 percent to 27.26 euros, and LVMH Moët Hennessy Louis Vuitton, 3.4 percent to 123.20 euros. The euro traded at $1.30 while the pound went for $1.62.The leader of the Greek left-wing party Syriza has three days to form a coalition government, and has vowed to back out of the austerity deal that Greece brokered with the EU last year and to nationalize the country’s banks.
To celebrate Pride 2018, @themarcjacobs released the #GratefulNotHateful campaign, a social media initiative aimed at extending Pride beyond the parade. Inspired by Jacobs’ everyday outlook, the campaign features Jacobs along with a group of models and social media stars who are members and supporters of the LGBT community, all seen wearing @marcbeauty’s Highliner Gel Eye Crayons in colors of the rainbow. Head to our Instagram stories to see close-ups of the liner. #wwdbeauty
Virgil Abloh’s dad Nee and Don Crawley, cofounder of RSVP Gallery, were some of the hometown crew at the Chicago-born designer’s debut show for Louis Vuitton. (📸: @jdiderich ) #wwdmens #louisvuitton #virgilabloh
About last night: @marycharteris and @adwoaaboah hit up Hyde Park for the Serpentine Galleries’ annual summer party held in partnership with @chanelofficial. Head to WWD.com to see more photos. #wwdfashion
“This is Paris, my first show. I’m all about democracy. If some kid shows up, flew from New Jersey to just be around, let’s get him a seat.” — @virgilabloh tells WWD’s @jdiderich ahead of his first show for @louisvuitton men’s. (📸: @alfredo_piola ) #wwdmens #virgilabloh #louisvuitton
“Kate Spade was a true fashion icon who brought joy to the lives of women around the world, and inspired women to live life to the fullest. We are dedicated to carrying on her legacy,” said Anna Bakst, brand president and chief executive officer of @katespadeny. The Kate Spade Foundation announced that it will be donating $1 million to suicide prevention and mental health awareness in tribute to the recent death of Kate Spade. Read more on WWD.com. #wwdnews (📷: @chinseephoto)
A first look at @virgilabloh’s sneakers for @louisvuitton. Abloh spoke to WWD about his debut collection for Louis Vuitton, creating @kendalljenner’s #metgala outfit and redefining the heritage brand. Read the full story on WWD.com. #wwdfashion 📷: @alfredo_piola)
The world’s largest producer of denim @iskodenim is sharing the strategy behind its product development process. Read our full interview with ISKO’s product development manager Baris Ozden on the company’s extensive research practices, upcoming denim trends and the latest material innovations on WWD.com. #iskodenim