The global smartwatch market continues to expand, and the contest to dominate the market is shaping up to be a two-horse race between Fitbit and Apple.
In this series, we’ve discussed how Fitbit (FIT) is grappling with declining sales driven by competition from peers such as Apple, Xiaomi, Garmin (GRMN), and Fossil (FOSL).
Fossil (FOSL) stock has returned 204% in the last 12 months, 50% in the last month, and 2.4% in the last five days. Since the start of 2018, Fossil stock has risen significantly, by 276%.
Apple (AAPL) announced during the Worldwide Developers Conference (or WWDC) on June 4 that it would release updated operating software for its smartwatch.
Historical stock returns Fitbit (FIT) has returned -24% in the trailing 12 months, -8% in the last month, and -10.7% in the trailing five days. The stock fell 75% in 2016 and 22% in 2017, and it’s fallen 15% since the start of 2018. Peers Garmin (GRMN), GoPro (GPRO), and Fossil (FOSL) have returned 16%, -40%, and […]
Gross margin was 44.2% in 4Q17 Fitbit (FIT) needs to improve its profit margins and drive operational efficiency to offset declining device sales. Fitbit reduced its inventory by 46% YoY (year-over-year) in 4Q17 to $123.9 million, compared with $230.4 million in 4Q16. As shown in the above table, Fitbit has considerably reduced inventory in each of […]
Of the 16 analysts tracking Fitbit, four gave the stock a “buy” recommendation, and ten recommended a “hold.” There were two “sell” recommendations on the stock.
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%.
CTB rose by 0.93% to close at $34.16 per share during the fifth week of August, with weekly, monthly, and YTD price movements of 0.93%, -0.53%, and -8.9%.
On May 13, 2016, the S&P 500 slightly outperformed the S&P Consumer Staples and the S&P Consumer Discretionary as a whole. In this series, we’ll look at the top-losing stocks.
Fossil Group’s stock opened 28% higher than its closing price on February 16, 2016, as it exceeded expectations. If we look at its post-rally price return over the last year, the stock has returned -47.3%.
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.
Tiffany is trading at a higher multiple than its peers Signet and Fossil and at a higher valuation relative to SPY and the Dow Jones Industrial Average.
Tiffany & Co. is a holding company that operates through its subsidiary companies. The most notable is Tiffany & Company, a jeweler and specialty retailer.
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 is experiencing the negative effects of the strong US dollar. The dollar’s continued strengthening may lead to slower growth for the jewelry market.
Tiffany’s key strategic objectives for growth include expanding marketing communications, opening stores in key markets, and enhancing in-store experience.
In April 2015, Tiffany launched its vintage-inspired CT60 watch collection, considering the growth opportunities in the global luxury timepiece market.
Tiffany’s capital expenditure was 5.8% of its sales in fiscal 2015. Signet Jewelers, Fossil, and Pandora had capex-to-sales ratios of 3.8%, 2.7%, and 2.4%.
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.
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.
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.
In 2016, GoPro will develop the new Quadcopter and Flagship camera to boost its revenue growth. The new Quadcopter will capture videos in a more stabilized manner.
In the previous quarter, Signet reported an increase in profitability. In 2Q16, Signet reported gross and operating margins of 34.8% and 7.2%, respectively.
Signet Jewelers operates through 100% owned subsidiaries with a presence in the US, the UK, and Canada. It has ~3,600 stores under various name brands.
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.
Signet aims to advance its vertical integration, including the sourcing and manufacturing of rough diamonds, which should help improve its supply chain.
Stocks at the bottom of SPY on November 13, 2015, were Fossil Group (FOSL), GameStop (GME), and Nordstrom (JWN). These stocks yielded -36.5%, -16.5%, and -15.0%, respectively, that day.
Let’s compare Fossil with its peers. The price-to-earnings ratios of Fossil, Coach, Kate Spade, and Guess? are 7.5x, 21.9x, 31.8x, and 18.2x, respectively.
Though consumer sentiment remains low, the First Trust Consumer Discretionary AlphaDEX ETF (FXD) has gained 0.79% in the past week as of November 5, 2015.
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 […]
Allscripts provides clinical, financial, and population health management solutions to physicians, health systems, hospitals, and post-acute organizations.
Both the International Council of Shopping Centers (or ICSC) Goldman Sachs Store Sales report and the Johnson Redbook Index report for the week ended April 5 will be released on Tuesday, April 8.
