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Citigroup Says Watch Sales Jetting Up for Fossil

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Citigroup has published a research report on Fossil (NASDAQ: FOSL) commenting on rising watch sales.

In the report, Citigroup writes, "We view impressive results at Michael Kors as a positive readthrough to Fossil's 2012E revenue growth as FOSL is the license holder of Michael Kors watches (~12% of Fossil's revenue). Top positive reads: (1) We expect +DD comp growth in watches plus +DD store & shop in shop growth to fuel continued growth in Michael Kors watch revenues for Fossil. (2) KORS comp guidance +35% in 1Q & +20% FY should drive FOSL. (3) New geographies will continue to be positive drivers with healthy trends in Europe & South America awareness are positives. (4) KORS is pleased with early results of Jewelry which likely indicates this can be a substantial business; we think jewelry could double again in 2013E from an est. $30mm this year for Fossil in 2012E."

Citigroup maintains its Buy rating and $88 price target on Fossil, which is currently trading down $1.32 from yesterday's $72.71 closing price.

Latest Ratings for FOSL

DateFirmActionFromTo
Aug 2014NomuraMaintainsNeutral
May 2014Brean CapitalUpgradesSellHold
May 2014JefferiesMaintainsBuy

View More Analyst Ratings for FOSL
View the Latest Analyst Ratings

Posted-In: CitigroupAnalyst Color Reiteration Analyst Ratings

 

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