Fossil Group (NASDAQ:FOSL) Releases Earnings Results, Misses Estimates By $0.17 EPS

Key Points

• Reported EPS miss: Fossil Group posted EPS of ($0.15), missing consensus by $0.17, even as revenue beat at $280.5 million; the company remains unprofitable with a -6.32% net margin and -18.08% return on equity.
• Market reaction & outlook: Shares rose 2.2% to $4.12 on above-average volume, institutional investors now own about 61% after recent buying by firms like Goldman Sachs and Acadian, and analysts have a consensus "Hold" with an average target of $6.00.

Fossil Group (NASDAQ:FOSL - Get Free Report) posted its quarterly earnings results on Wednesday. The accessories brand company reported ($0.15) earnings per share (EPS) for the quarter, missing the consensus estimate of $0.02 by ($0.17), FiscalAI reports. The business had revenue of $280.50 million during the quarter, compared to analyst estimates of $249.28 million. Fossil Group had a negative net margin of 6.32% and a negative return on equity of 18.08%.

Fossil Group Stock Up 2.2%

NASDAQ FOSL traded up $0.09 on Wednesday, reaching $4.12. The company had a trading volume of 961,565 shares, compared to its average volume of 668,493. The company has a quick ratio of 1.00, a current ratio of 1.56 and a debt-to-equity ratio of 1.76. The company's fifty day moving average is $3.95 and its 200 day moving average is $3.25. Fossil Group has a 52-week low of $0.86 and a 52-week high of $5.00. The stock has a market capitalization of $225.12 million, a P/E ratio of -3.24 and a beta of 1.68.

Institutional Trading of Fossil Group

Several institutional investors have recently made changes to their positions in FOSL. Goldman Sachs Group Inc. raised its holdings in shares of Fossil Group by 43.6% in the first quarter. Goldman Sachs Group Inc. now owns 144,375 shares of the accessories brand company's stock valued at $166,000 after purchasing an additional 43,849 shares during the last quarter. Jane Street Group LLC grew its position in Fossil Group by 93.1% in the 1st quarter. Jane Street Group LLC now owns 42,584 shares of the accessories brand company's stock worth $49,000 after purchasing an additional 20,530 shares in the last quarter. Acadian Asset Management LLC increased its stake in Fossil Group by 154.1% in the 1st quarter. Acadian Asset Management LLC now owns 459,023 shares of the accessories brand company's stock valued at $527,000 after buying an additional 278,391 shares during the last quarter. XTX Topco Ltd bought a new position in shares of Fossil Group during the 2nd quarter worth approximately $122,000. Finally, Nantahala Capital Management LLC boosted its stake in shares of Fossil Group by 21.5% in the 2nd quarter. Nantahala Capital Management LLC now owns 5,087,803 shares of the accessories brand company's stock worth $7,530,000 after buying an additional 898,626 shares during the last quarter. Institutional investors own 61.14% of the company's stock.

Wall Street Analysts Forecast Growth

A number of research analysts have weighed in on the stock. Northland Securities assumed coverage on shares of Fossil Group in a research note on Thursday, February 19th. They issued an "outperform" rating and a $7.00 price objective on the stock. Weiss Ratings reissued a "sell (d-)" rating on shares of Fossil Group in a research report on Thursday, January 22nd. Finally, Zacks Research raised shares of Fossil Group to a "hold" rating in a research report on Friday, February 20th. Two investment analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has issued a Sell rating to the company's stock. Based on data from MarketBeat, the company currently has a consensus rating of "Hold" and an average target price of $6.00.

Fossil Group Company Profile

Fossil Group, Inc designs, develops, markets and distributes consumer fashion accessories, focusing on lifestyle and wearable technology. The company offers a wide range of products including analog and digital watches, smartwatches, jewelry, handbags, small leather goods and wearable devices. It sells merchandise under its own Fossil brand and via license agreements with international labels such as Michael Kors, Armani Exchange, Burberry, Diesel, DKNY, Kate Spade and Tory Burch. Through its proprietary e-commerce platforms and global retail network, Fossil Group serves markets across North America, Europe, Asia and the Middle East.

The group's wearable technology segment combines traditional timepieces with features such as fitness tracking, heart-rate monitoring and NFC payments.

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