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Fossil Group is growing in Asia and trying to innovate its way out of a tough watch market with more “connected” offerings, but still has plenty of work to do.

The company’s second-quarter net losses narrowed slightly for the quarter to $7.3 million, or 15 cents a share, from $7.8 million, or 16 cents, with restructuring charges taking a bite out of results for both periods.

Sales for the three months ended June 29 slumped 13 percent to $501.4 million from $576.6 million. The U.S. and U.K. markets logged sales declines while China and India posted gains. Fossil makes products under a number of fashion brands under licensing deals, including Armani Exchange, Emporio Armani, Chaps by Ralph Lauren, Diesel, DKNY, Michael Kors, Tory Burch and more.

While the company’s overall sales dropped, Kosta Kartsotis, chairman and chief executive officer, noted that the trend was improving from the first quarter, when the top line sunk by 18.3 percent.

He also said the Emporio Armani business “maintained its strong momentum” and the Fossil brand “grew solidly” as e-commerce and smartwatches gained.

Kartsotis told analysts on a conference call: “Our most critical goals are to change the trajectory of our sales while also transferring the company to unlock significant growth in the future. While we remain focused on profitability, delivering exciting new product innovations and engaging consumers in unique and creative ways is essential in this disruptive environment. Innovation and is at the core our business and we are excited about the new product that will be hitting the market this fall and holiday across our portfolio brands.”

The company has close ties to Google, which bought intellectual property tied Fossil’s smartwatch technology in January, has been looking to fast forward its offering.

Fossil’s fifth-generation smartwatches, which debuted this month, and is the first revamp since the Google deal. The new watches were designed to have longer battery life and connect more to the wearer’s home and life.

That helps the company, and Google, square off with the Apple Watch, which is still the wearable to beat, at least in terms of market share.

Fossil said it is still working to operate more efficiently so it can invest in “more innovation and growth-driving digital activities.”

But for now, Fossil is still adjusting with the market.

The company expects sales will decline by 8 to 12 percent this year.

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