Europe expected to power Fossil growth this year


America’s contribution to global sales for Fossil Group will drop below 50% for the first time this year as the company cranks up its focus on European and Asian markets.

A corporate briefing at its press day for Autumn/Winter watch collections showed America contributing exactly half of global sales of $3.51 billion last year. Europe accounted for 34% and Asia 16%, both of which are expected to rise faster than US sales.

World-wide operating income rose to $565 million last year, but the group operating margin dipped to 16.1% from 17.2% in 2013.

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The group’s share price is down from $112 at the start of 2015 to $72 today as the strong US dollar hit income from sales, particularly in Europe.

Commenting on Fossil’s first quarter results in May, CEO Kosta Kartsotis said: "We remain very optimistic about our future, even while experiencing some near-term headwinds. Our numerous strategic advantages position us well to gain long-term market share in our growing industry.”

Sales of Michael Kors watches, which Fossil produces under license, disappointed US investors at the end of May, and led to a drop of 24% in the Michael Kors share price.

Fossil UK says Michael Kors watches are still gaining market share in their sector.

Tags : business newsDaniel Malinsfossil groupjames butterymichael korswatch newswatches newswatchpro
Rob Corder

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