FOSSIL RESTRUCTURES EXECUTIVE TEAM
NEW YORK — In a move designed to more effectively manage its growth, accessories and burgeoning apparel maker Fossil has restructured the company into three operating divisions and created an office of the president.
Fossil president Kosta Kartsotis has assumed the additional title of chief executive officer and will continue to oversee the company’s sales, marketing, operational and administrative functions. Tom Kartsotis, previously ceo, continues as chairman. The position of chief operating officer, previously held by Kosta Kartsotis, will not be filled.
The three new operating divisions of the Richardson, Tex.-based company are: Fossil watches and stores, fashion accessories and international and special markets. They will be supervised by three members of Fossil’s current management team, each of whom previously held the title of executive vice president.
Richard Gundy has been named president of Fossil watches and stores, with responsibility for all domestic Fossil watch sales, order management and retail and outlet store development and sales.
Mark Quick is now president of the fashion accessories division with responsibility for men’s and women’s small leather goods, handbags, belts, sunglasses and eyewear.
Michael Barnes has been named president of the international and special markets division, overseeing all international operations, export sales, premium and private label sales, the Relic brand of fashion watches and special markets.
The supporting administrative and operational structures for the company have also been divided. Randy Kercho, executive vice president, is responsible for finance and accounting, investor relations, information systems, distribution and mergers and acquisitions. T.R. Tunnell, formerly senior vice president, development and chief legal officer, has been promoted to executive vice president. He will oversee legal affairs as well as human resources, facilities planning and administration.
In addition, Mike Kovar, formerly senior vice president, finance, has been promoted to senior vice president and chief financial officer, reporting to Kercho.
Gundy, Quick, Barnes, Kercho and Tunnell will make up the office of the president, which will serve as a formal policy and strategic decision-making body. As part of that body, they will report to Kosta Kartsotis and Tom Kartsotis.
Fossil’s earnings bolted ahead 21.1 percent to $11.9 million in the quarter ended July 1 as sales shot up 25.6 percent to $113.4 million. However, the company warned on Sept. 18 that the impact of the weak euro and other foreign currencies against the dollar would cause third-quarter earnings to be flat and fourth-quarter profits to decline by up to 10 percent.
However, Fossil noted last month that it “anticipates year 2000 sales growth to approximate 20 percent with operating and net income margins that are among the highest in the company’s peer group.”