“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