Here's Why Fossil Group Stock Tanked After Briefly Hitting 52-Week Highs
Shares of Fossil Group (NASDAQ: FOSL) briefly hit 52-week highs on Monday morning of $13.61 per share, according to Yahoo Finance. Then, seemingly for no reason, the stock began to tank. It turns out a prominent watch designer signed a big deal today, but it was not with Fossil. This could be the cause of Fossil stock's huge drop. As of of 3:45 p.m. EST, the stock was down 26%.
Giorgio Armani owns a luxury brand company named after himself. Included in his luxury offerings are watches and jewelry, a big part of Fossil's business. Fossil has a licensing agreement with Armani Exchange and Emporio Armani through the end of 2023, and it could hardly afford to lose it. In 2019, Armani accounted for 18.3% of Fossil's net sales.
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Source Fool.com
