Fossil Group Inc

On January 7, 2016, Signet Jewelers (SIG), the world’s largest retailer of diamond jewelry, announced its broad-based success in the holiday season with revenue of $1.9 billion.

Trends shaping the jewelry industry include Increasing demand for branded jewelry and an increased focus on e-commerce sales.

Porter’s Five Forces model suggests that there are five forces that determine the attractiveness and long-term profitability of an industry or a sector.

Tiffany & Co.’s Americas segment includes sales from company-operated retail stores in the United States, Canada, Mexico, and Brazil.

Fossil Group (FOSL) has a market cap of $1.6 billion. It rose 8.4% to close at $35.70 per share on November 16, 2016.

Since it’s a luxury brand, Tiffany & Co.’s products are priced high, with no promotions. Thus, Tiffany products may be out of reach for many customers.

Kate Spade (KATE) reported fiscal 3Q16 net sales of $316.5 million—a rise of 14.1% compared to net sales of $277.3 million in fiscal 3Q15.

Since 2006, Tiffany’s margins have been on the higher side compared to its peers, including Signet Jewelers and Fossil, in the retail jewelry industry.

Tiffany has been increasing its advertising expenses. In fiscal 2015, it spent $284 million on advertising, marketing, and public and media relations.

Total retail jewelry sales in the US grew at a CAGR of 4.4%, reaching $74.7 billion in 2014. Fine jewelry sales grew at a CAGR of 5%, reaching ~$69 billion.

Though Fitbit’s smartwatch sales rose 437% in 2018, the company posted negative overall revenue growth.

Fossil fell by 4.6% to close at $28.13 per share during the fifth week of August, with weekly, monthly, and YTD price movements of -4.6%, -4.8%, and -23.1%.

Signet launched a new collection called Ever Us in October 2015. It’s meant to meet the need for jewelry that represents the bond between two people.

At the end of fiscal 2015, Tiffany had a total inventory of $2.4 billion and inventory turnover of 0.73x, implying potential low sales and excess inventory.

Tiffany & Co. has presences to differing degrees in the Asia-Pacific, Japan, Europe, and Other regions.

Tiffany’s key strategic objectives for growth include expanding marketing communications, opening stores in key markets, and enhancing in-store experience.

Tiffany & Co. is a holding company that operates through its subsidiary companies. The most notable is Tiffany & Company, a jeweler and specialty retailer.

Signet aims to advance its vertical integration, including the sourcing and manufacturing of rough diamonds, which should help improve its supply chain.

Signet Jewelers operates under three divisions: the Sterling Jewelers division, the Zale division, and the UK Jewelry division.

These changes should lower future inventory levels and probably result in higher inventory turnover and lower inventory-to-cash days.

Under Armour: Sourcing, manufacturing, and distribution decisions Under Armour, Inc. (UA) manufactures virtually nothing in-house. Production is outsourced to third-party manufacturers overseas. This is common practice in the apparel industry among companies including the The Gap, Inc. (GPS) and Fossil, Inc. (FOSL). These companies are held by the Consumer Discretionary Select Sector SPDR ETF (XLY), as are United Armour, or […]