In The Third Quarter, Fossil Will Double To Decline In Sales Profits Or Will Turn To Wearable Areas.

As of October 1st, American Watch Manufacturers

The company's net profit in the third quarter dropped from $57 million 500 thousand last year to $17 million 400 thousand, earning 36 cents per share, and sales fell 4.3% to 738 million US dollars.

By region, sales in the Americas decreased by 7% in the third quarter, while sales in Europe decreased by 4%, while sales in Asia increased by 8%.

According to its third quarter earnings report, the company's sales and profits declined in the current quarter, so the company decided to reinvest into wearable, technology accessories and other potential growth businesses.

Fossil expects the restructuring cost to reach US $150 million. The restructuring plan will be implemented in 2017 and 2018, mainly to simplify communication channels with consumers, improve communication efficiency with consumers, and adjust the distribution of the company's stores.

The company's CEO Kosta Kartsotis said the restructuring plan will be a multi-year plan to reinvent Fossil group.

At the early stage of the implementation, the company expects that the plan will comprehensively reform the traditional sales mode and operation mode of the company, and will further improve the way the company produces and develops its products.

push toward

The way.

Kosta Kartsotis revealed that during the holiday sales season, the company will position the market with new wearable products.

But because investors are skeptical, the company's share price dropped 2.9% to $24 A share in after hours trading.

Last year, Fossil was fed up with Misfit, a wearable technology company at a price of $260 million. Since then, the company has rapidly developed the product category.

In the past few months, the company has launched wearable products for 8 brands, including Chaps, Diesel, Emporio Armani, Fossil, Kate Spade New York, Michael Kors, Kors and New.

The rapid development of such products has enabled the company to add 100 minimum inventory units to the product category, including smart watches, hybrid tracker and active tracker.

In addition, Fossil wearable products have been sold to 40 countries around the world, and their systems have been plated into 20 different languages.

Kosta Kartsotis said that although this is only the beginning of the history of wearable products, it is also a major milestone for the company.

In order to succeed in the future, the company needs to strengthen the deployment of this sector, which is conducive to the future profit growth, which is also the most attractive opportunity at present.

According to industry comments, smart watch category has bright prospects, but apple is currently the dominant brand in this category, and consumers in the downturn are also looking forward to Apple brand upgrade.