Fossil Will Focus On Developing Wearable Products

Last year, Fossil was fed up with Misfit, a wearable technology company at a price of $260 million. Since then, the company has rapidly developed the product category.

In the past few months, the company has launched wearable products for 8 brands, including Chaps, Diesel, Emporio Armani, Fossil, Kate Spade New York, Michael Kors, Kors and New.

The rapid development of such products has enabled the company to add 100 minimum inventory units to the product category, including smart watches, hybrid tracker and active tracker.

In addition, Fossil wearable products have been sold to 40 countries around the world, and their systems have been plated into 20 different languages.

Kosta Kartsotis said, although this is only a

The beginning of history, but this is also a major milestone in the company.

In order to succeed in the future, the company needs to strengthen the deployment of this sector, which is conducive to the future profit growth, which is also the most attractive opportunity at present.

American Watch Manufacturers

The company announced its third quarter earnings recently. As of October 1st, the company's net profit in the third quarter dropped from $57 million 500 thousand in the same period last year to 17 million 400 thousand dollars, earnings per share were 36 cents, and sales fell 4.3% to 738 million dollars.

By region, sales in the Americas decreased by 7% in the third quarter, while sales in Europe decreased by 4%, while sales in Asia increased by 8%.

According to its third quarter earnings report, the company's sales and profits declined in the current quarter, so the company decided to reinvest into wearable, technology accessories and other potential growth businesses.

Fossil expects the restructuring cost to reach US $150 million, and the restructuring plan will be implemented in 2017 and 2018, mainly to simplify the relationship with consumers.

To improve the efficiency of communication with consumers and adjust the distribution of the company's stores.

The company's CEO Kosta Kartsotis said the restructuring plan will be a multi-year plan to reinvent Fossil group.

At the early stage of the implementation, the company expects that the plan will comprehensively reform the traditional sales mode and operation mode of the company, and will further improve the way the company produces and develops products and the way to market the products.

Kosta Kartsotis revealed that during the holiday sales season, the company will position the market with new wearable products.

But because investors are skeptical, the company's share price dropped 2.9% to $24 A share in after hours trading.

According to industry comments, smart watch category has bright prospects, but apple is currently the dominant brand in this category, and consumers in the downturn are also looking forward to Apple brand upgrade.

International Data noted that sales of smart watches in the third quarter fell by 52% to 2 million 700 thousand, but economic growth is expected to return to growth.