Why Fossil Group Shares Plunged 25% Thursday Morning
Shares of Fossil Group (NASDAQ: FOSL), a global designer and distributor of accessory products that include watches and other wearables, plunged more than 25% lower Thursday morning after a surprisingly weak third-quarter report.
Starting from the top, sales declined 11.4% to $539.5 million during the third quarter compared to the prior year, which missed analysts' estimates of $558 million. But it was the bottom line that concerned investors, as Fossil lost $26 million, or $0.51 per share, in the third quarter, compared to earnings of $5 million, or $0.10 per share, during the prior year. The result was wildly short of analysts' earnings estimates of $0.21 per share. Weak sales results were driven by a number of factors including store closures, currency effects, inventory liquidation levels, and reduced sales in the lower-margin off-price channel, among others.
Image source: Getty Images.
Source Fool.com
