FOSL

Fossil Group Inc.

Consumer


Presented:01/22/2014
Price:$113.62
Cap:$6.27B
Current Price:$1.20
Cap:$0.06B

Presented

Date01/22/2014
Price$113.62
Market Cap$6.27B
Ent Value$6.54B
P/E Ratio11.3x
Book Value$19.26
Div YieldN/A
Shares O/S55.21M
Ave Daily Vol860,000
Short Int6.83%

Current

Price$1.20
Market Cap$0.06B
Fossil Group, Inc., together with its subsidiaries, engages in the design, development, marketing, and distribution of consumer fashion accessories worldwide. It operates in four segments: North America Wholesale, Europe Wholesale, Asia Pacific Wholesale, and Direct to Consumer. The company provides men's and women's watches; fashion accessories for men and women, including handbags, belts, small leather goods, jewelry, and sunglasses; and a line of soft accessories consisting of hats, gloves, and scarves. It also offers clothing, such as jeans, outerwear, fashion tops and bottoms, and tee shirts, as well as optical frames. The company offers its products under its proprietary brands, including FOSSIL, MICHELE, RELIC, SKAGEN, and ZODIAC, as well as under the licensed brands consisting of ADIDAS, ARMANI EXCHANGE, BURBERRY, DIESEL, DKNY, EMPORIO ARMANI, KARL LAGERFELD, MARC BY MARC JACOBS, and MICHAEL KORS. Fossil, Inc. markets its products through department stores, specialty retail stores, specialty watch and jewelry stores, retail and outlet stores, mass market stores, and clothing stores, as well as through its catalogs and Website. As of December 29, 2012, it owned and operated 131 retail stores and 95 outlet stores located in the United States, as well as 185 retail stores and 62 outlet stores internationally. The company was formerly known as Fossil, Inc. and changed its name to Fossil Group, Inc. in May 2013. Fossil Group, Inc. was founded in 1984 and is headquartered in Richardson, Texas.

Highlights

The presenter is long shares of Fossil Group (FOSL) and thinks the risk/ reward is attractive for the often misunderstood retailer. The stock has performed well since the summer of 2012 when it settled in the $70-80 range following a pummeling at the hands of growth investors immediately following a sales miss and guidance cut (May, 2012). He believes the company’s five-plus year growth streak may have legs, and the current entry point (~14x his 2014 EPS estimate) is attractive.

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Idea Discussion

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