“The Apple Watch isn’t scheduled to go on sale until April, but already it’s cutting into the traditional watch industry’s business,” Chris Ciaccia reports for TheStreet. “On Tuesday night’s earnings call, designer-watch maker Fossil’s CFO Dennis Secor said that newcomers (read: Apple) are hurting the company’s business by causing ‘near-term disruption.'”
We see opportunities in developing new categories like wearable tech and growing existing categories, such as branded jewelry and leather. These opportunities do not come without challenges. While notable newcomers can help grow the market by bringing new customers into the category, they might also cause some near-term disruption. Managing the natural ebbs and flows, the brand lifecycle can also prove challenging. However, our portfolio of diversified brands can help navigate these challenges. – Dennis Secor, Fossil CFO
“Shares of Fossil were plunging more than 14% on Wednesday after the company missed fourth-quarter estimates and 2015 earnings estimates came in much lower than expected,” Ciaccia reports. “Fossil said it expects to earn between $5.45 and $6.05 a share, vs. the $7.49 per share analysts were expecting.”
Read more in the full article here.
MacDailyNews Take: Fossil. Aptly named.
Related articles:
Apple Watch could do three times Fossil sales in first year – November 17, 2014
Enjoy it while it lasts, Fossil – Apple Watch looms – November 13, 2014
Barclays: Apple Watch could crush companies like Fossil – September 16, 2014
Crabapple’s take:- Fossils have future value which can be realised several hundred or thousands of years after the demise of the entity.
That of course depends on what value the fossils will be apportioned by the people who are around at that time!
Maybe the price of a Moon Watch will drop to a few hundred dollars. Then I can get one. 🙂
While Mr. Secor’s comments are much more, umm, diplomatic than Palm’s Ed Colligen, he doesn’t seem to be doing much more than ‘whistling past the graveyard’.
Apple Watch is about as much a ‘watch’ as the iPhone is a ‘phone’; two different classes of devices.
Apple Watch will do much more than just tell you the time or date… or look pretty.
Ladies and gents, it’s time to buy some more AAPL. All the punditbots and fundtards talking it down are just shouting at the train as it goes by.
the apple watch has frozen sales of fossil, meaning nixon is also doomed. these are the cool watches you see at a 100 – 150 price point in your skateboard store and ski shops, etc. Apple watch showing disruptive demand in this young, x-sports oriented demographic, is huge for Apple, because it shows a demand $200 above the current sweet spot for that demo. Total DOOM
“On Tuesday night’s earnings call, designer-watch maker Fossil’s (FOSL – Get Report) CFO Dennis Secor said that newcomers (read: Apple) are hurting the company’s business by causing “near-term disruption”:
Hyperbole, folks.
I’m not an Apple Watch hater. I may purchase one. it is obvious that the Apple Watch stands head and shoulders above the field of pretenders. Apple may very well be the newcomer that the the CFO was referring to (or not).
Unless there is evidence of this, it should be stated as an opinion and will be taken as hyperbole. If it was Apple, why didn’t he just say “Apple”?
“We believe the imminent release of…”, “We know that anticipation of…”. None of those things were said.
add another to the roadkill count…