About Fossil Partners, L.P.
Fossil's bedrock is the watch business. It also sells accessories and apparel. A leading seller of mid-priced fashion watches in the US, its brands include company-owned Fossil and Relic watches, as well as licensed names
Fossil's wholesale business accounts for the bulk of its sales, while its direct-to-consumer business (company-owned retail stores and e-commerce) brings in the rest. Its US retail arm operates about 100 company-owned stores and about 130 outlets located in malls. Internationally, the company operates about 230 retail shops and more than 130 outlet stores.
Watches is its largest product line, accounting for almost 75% of net sales. Other major products include leathers (nearly 15%) and jewelery (almost 10%).
Texas-based Fossil has more than 265 stores under a variety of formats and banners (Fossil, Watch Station, and SKAGEN) across North America, which accounts for nearly half of the company's total sales. Another 320-plus stores are located outside of North America. Fossil has warehouses and distribution centers in the US (Texas), Germany, and Hong Kong. It sells its products in about 150 countries worldwide, but the US is its largest market, accounting for 45% of net sales.
Sales and Marketing
The company's products are distributed globally through various distribution channels, including wholesale in countries, direct to the consumer through its retail stores and commercial websites, and through third-party distributors. Internationally, its products are sold to department stores, specialty retail stores, and specialty watch and jewelry stores, and websites.
Fossil's marketing modes includes point-of-sale merchandise displays, print and media advertising, as well as company websites, catalogs, and retail stores.
The company's 10 largest customers in the US represent about 20% of its net sales. Its wholesale customer base includes such prominent players as Amazon, Target, and Wal-Mart.
Fossil's revenues decreased by 6% from 2015 to 2016 mainly due to an overall slowdown in the traditional watch market. Overall revenues from the Americas decreased by 8%, while Europe's revenues decreased by 6%. These declines were offset by a 4% rise in revenues from Asia.
Its leathers business revenues also decreased 4%, and jewelry category revenues decreased 8%, mostly as a result of a decrease in demand for Michael Kors and Fossil branded products during 2016.
Net income also dropped by 64% from 2015 to 2016 due to the lower revenue lower sales and the impact of unfavorable foreign currency translations. In addition, Fossil's operating cash flow declined 42% from 2015 to 2016 due to the lower net income coupled with cash used to func capital expenditures and to pay down debt.
To compete with high-tech rivals, Fossil's growth strategy is centered around the burgeoning trend of wearable technology. As a result of its 2015 acquisition of Misfit, Fossil is using that company's technology platform across its portfolio of brands to add incremental functionality to include fashion accessories including activity tracking, sleep monitoring, and notifications.
Making swift progress in this market, Fossil in 2016 and 2017 doubled its distribution points for its connected devices and more than doubled its sales of wearables. Even more significant, Google continues to be a key strategic partner for the company, supporting the expansion of products powered by Android Wear 2.0. In conjunction with this partnership, Fossil initially launched five brands -- Diesel, Emporio Armani, Fossil, Michael Kors, and Misfit -- that offer customers new, full-round touchscreen smartwatches. By the end of 2017, Fossil Group will have launched more than 300 connected watch styles across 14 brands.
Fossil also closely monitors its store network to open stores in lucrative markets while closing clusters of underperforming stores. In 2016 it opened 18 new stores and closed 52 stores. During 2017, it anticipates opening approximately 15 additional retail stores and closing about 40 stores globally.
Mergers and Acquisitions
Fossil in 2015 acquired Misfit, an innovator and distributor of wearable technology and stylish connected devices, for $215 million. The primary purpose of the acquisition was to acquire a scalable technology platform that can be integrated across the Fossil's multi-brand portfolio and to aggressively accelerate its position within the wearable technology sector.
901 S CENTRAL EXPY
Richardson, TX 75080-7302
Phone: 1 (972) 234-2525
Employer Type: Privately Owned
Dc Manager Shipping: Kendrick Blanton
Senior Technology Recruiter: Christie Linebarger
Employees (This Location): 700
Employees (All Locations): 1,325