Fossil Eyes Rapid Expansion of Wearables After Challenges; CFO Leaving; Stock Falls
Fossil’s “successful entry” into wearables enabled the company “to expand our addressable market and to work with new wholesale partners in the consumer electronics channel,” said CEO Kosta Kartsotis on a Tuesday earnings call. On the call, the company announced…
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a sizable loss in the second quarter and the stock market reacted Wednesday by dropping the closing share price to $8.87, a 25 percent decline. “But we didn't get as far as we wanted to" during Q2, said Kartsotis. “Much of our time has been spent finalizing the specifics around margin and other details given that this is a new distribution channel for us.” That CE "channel works a little bit differently,” said outgoing Chief Financial Officer Dennis Secor. Fossil suffered from a “lack of understanding exactly how that channel works ... we're catching up quick,” said Secor. The company named a board member to succeed Secor (see the personals section of this issue). “Our products are too big for female customers and female customers are our core,” he said. “We're just going to have a product that looks better; it feels better and allows for much better branding and design.”