Buys FOSL at 34.11.

FOSL’s trailing earnings are 6.06.  P/E is 5.6

They guided FY 16 to 4.15 to 4.75. P/E is 8.2 in the 4.15 low end.

12-Nov-15 16:10 ET
Fossil beats by $0.05, misses on revs; guides Q4 EPS below consensus; acquires wearable tech. co Misfiit  (51.01 -1.03)
  • Reports Q3 (Sep) earnings of $1.19 per share, $0.05 better than the Capital IQ Consensus of $1.14; revenues fell 13.8% year/year to $771 mln vs the $794.97 mln Capital IQ Consensus.
  • Co issues downside guidance for Q4, sees EPS of $1.05-1.65 vs. $2.14 Capital IQ Consensus. Expects revenue to decline 16.0-7.0% y/y; sees Operating Margin in the range of 8.5-11.5%.
  • Lowers FY15 EPS GAAP guidance to $4.15-4.75 (Prior $4.80-5.60); Expects revenues to decline 10.5-8.0% (Prior down 8-4%).

To Acquire Wearable Technology

  • Co announced that it has entered into a definitive agreement to acquire Misfit, Inc., an innovator in wearable technology and stylish connected devices. The acquisition will enable Fossil Group to expand its addressable market, offering consumers both traditional timepieces and fashionable connected accessories. Misfit brings to Fossil Group a scalable cloud and app platform, a world-class software and hardware engineering team, a native wearable technology brand and a pipeline of innovative products.
  • Fossil Group expects the acquisition to close before the end of fiscal 2015, subject to customary closing conditions and regulatory approval. The purchase price of $260 million, including transaction costs, will be funded through a combination of cash on hand and bank debt.
  • Courtesy of

The buy of Misfit,Inc. puts them back in the watch business IMO.

Leave a Reply