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.

Fossil Group reported 4Q15 net sales of $992.5 million, a fall of 6.8% compared to net sales of $1,064.8 million in fiscal 4Q14.

Fossil Group (FOSL) has a market cap of $2.1 billion. FOSL rose by 28.6% to close at $44.30 per share on February 17, 2016.

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

On August 2, Fossil was trading at a PE multiple of 12.9x. Fossil’s valuation multiple has fallen by 9% since the announcement of its 1Q16 results.

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.

Signet Jewelers has taken on several merchandise initiatives in 2015. It expects its “Ever Us” offering to become a new trend in the jewelry industry.

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.

Apple (AAPL) recently released its fiscal 2019 third-quarter earnings, and it became clear that iPhone sales might take longer to recover.

Consumer technology company GoPro (GPRO) is set to announce its first-quarter earnings results on May 2.

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

Shares of consumer tech company Fitbit are up over 11% so far in 2019. From the start of this year to February 27, 2019, the stock rose 28%.

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).

Apple (AAPL) has a market cap of $595.2 billion. It rose 1.5% to close at $111.73 per share on November 21, 2016.

Fossil Group (FOSL) has a market cap of $1.7 billion. It rose 2.7% to close at $35.24 per share on November 21, 2016.

TreeHouse Foods reported 3Q16 net sales of $1.6 billion, a rise of 98.7% compared to net sales of $798.6 million in 3Q15.

Fossil Group (FOSL) has a market cap of $1.3 billion. It rose 3.5% to close at $25.58 per share on November 4, 2016.

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%.

Fossil’s (FOSL) margins have been in a declining trend during recent quarters.

As of January 8, 2016, Signet Jewelers was trading at the highest forward PE multiple compared to its peers, including Tiffany and Fossil Group.

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.

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.

In April 2015, Tiffany launched its vintage-inspired CT60 watch collection, considering the growth opportunities in the global luxury timepiece market.

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 Jewelers, the largest specialty retail jeweler in the US, the UK, and Canada, had a debt of $1.5 billion on its balance sheet in fiscal 2015.

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.

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.

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.

Recently, Levi Strauss and Google (GOOG) (GOOGL) announced a groundbreaking partnership for the apparel industry. It’s called “Project Jacquard.”

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 […]