Piper Jaffray Reiterates on Fossil Group as Proprietary Holiday Analysis Suggests Jewelry Momentum Could Continue

In a report published Thursday, Piper Jaffray analyst Erinn E. Murphy reiterated an Overweight rating and $147.00 price target on

. In the report, Piper Jaffray noted, “We are reiterating our Overweight rating on FOSL following our proprietary analysis of the Michael Kors Holiday 2013 catalog. Michael Kors is Fossil's largest licensed brand within its portfolio. We estimate the Michael Kors brand makes up ~18% of FOSL's revenue. Our analysis of this year's Holiday catalog suggests jewelry was the most prominently featured category in the entire catalog (more-so than handbags). In fact, of the 154 total items featured (ex-collection), 56 items were jewelry (36% of mix), over two-times the number of jewelry items featured in Holiday 2012. The size of the jewelry category for Michael Kors is significantly smaller today than their watches but the total global addressable market for jewelry is significantly larger than the $60B watch industry. As such, and with existing (and prospective) brands within the FOSL portfolio, we believe there is strong growth that lies ahead in the jewelry category for the company.” Fossil Group closed on Wednesday at $129.14.