Look at this warning.
Fossil sees Q2 $0.00-0.15 vs $0.58 Capital IQ Consensus Estimate; sees revs decreasing 5.0-1.5% y/y
I am sure the mall is just resting and not dead, per se. Nevertheless, companies like FOSL are going to have to start selling marijuana if they’re to survive this generational shift away from cheap, sub-standard, watches. Kids these days merely look at the time on top of their Netflix app to determine whether or not they’ll check up on their friends over at Snapchatville. The demand for items produced at Fossil are all but nonexistent.
In the first quarter of fiscal 2016, reported worldwide net sales decreased 9.0% or $65.3 million driven by a decline in the Company’s multi-brand licensed watch portfolio and the negative impact of changes in foreign currency. The following table provides a summary of net sales performance compared to the first quarter of fiscal year 2015.
The Company reported net income for the first quarter of fiscal 2016 of $5.8 million compared to $38.1 million for the first quarter of fiscal 2015. Diluted earnings per share were $0.12, compared to $0.75 for the first quarter of fiscal 2015.
“We continue to advance our digital and omni-channel initiatives and enhance our CRM capabilities; efforts we believe will position us to drive future growth as our customer continues to evolve and change the way they shop and engage with brands. Our team is making great progress toward integrating the Misfit technology and platform across our portfolio of brands and we anticipate launching new wearable products in eight brands later this year. We remain confident in our strategies and continue to believe the advantages of our global operating platform with distribution in 150 countries, powerful brands and now, the technology and resources to lead in wearables, will enable us to improve our long-term sales growth and profitability.”
Shares are down 22% in the after hours.
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Everyone commenting in the discretionary spending post is just frustrated that the market ticks up higher each day without them, and trying to justify why Fly talked them out of participating in this 3 month rally. The out of touch generalizations about millenials are hilarious.
For sure living in high rent neighborhoods and buying expensive meals and drinks is the current keeping up with the joneses.
I haven’t talked anyone out of anything. I’ve made it abundantly clear from 12/31 that I would not be actively trading. Period, end of story.
I hear ya, and the strategy makes sense. The general bearish tone must have kept some people from BTFD though. Which is perhaps still a great idea…time will tell. However the FIMO is strong with this group, and investors in general at this moment in time.
Alty, the generalizations about millenials may seem out of touch and hilarious to you. But it’s a large group, with much variability. So you may be equally out of touch with many members of that generation who are different from the ones you know.
I guess we all generalize from our own experiences. But sometimes our experiences are typical and sometimes not.
Alta
I have a strong bias. I realize that my bias might affect people. Throughout my career, it has helped far more than hurt. This rally has been narrow, to say the least. If you weren’t long energy or the anointed ones, you really didn’t make all that much money over the past 3 months.
Time will tell if I am proven right.
Great buying opportunity here. Easy 20-30% gain in a few weeks. The Obama and Yellen put is still in place.
You just know that we will be jolted out of complacency when what to took weeks to climb is sold off over a couple days . Count on it.