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Fossil Group

Coordinates: 32°58′47″N 96°42′09″W / 32.9798°N 96.7025°W / 32.9798; -96.7025
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For the astronomical classification, see Galaxy group § Fossil Groups.
Fossil Group, Inc.
Company typePublic
Nasdaq: FOSL
IndustryFashion
Founded1984; 40 years ago (1984) (as Overseas Products)
FounderTom Kartsotis[1]
HeadquartersRichardson, Texas, U.S.
Number of locations
364[2]
Key people
Kosta Kartsotis (chairman & CEO)
ProductsWatches, Wallets, Jewelry, Perfume, Leather products
RevenueDecrease US$2.21 billion (2019)[3]
Decrease US$−28.3 million (2019)[3]
Decrease US$−52.3 million (2019)[3]
Total assetsIncrease US$1.60 billion (2019)[3]
Total equityDecrease US$503 million (2019)[3]
Number of employees
7500 (2021)
Websitefossilgroup.com
Fossil store, Oxford Street, London, 2016

Fossil Group, Inc., is an American fashion designer and manufacturer founded in 1984 by Tom Kartsotis and based in Richardson, Texas. Their brands include Fossil, Relic, Michele Watch, Skagen Denmark, Misfit, WSI, and Zodiac Watches. Fossil also makes licensed accessories for brands such as BMW, Puma, Emporio Armani, Michael Kors, DKNY, Diesel, Kate Spade New York, Tory Burch, Chaps, and Armani Exchange.[4]

Kosta Kartsotis, brother of Tom Kartsotis and CEO, owns approximately 12.5% of Fossil stock. The company name is the nickname the brothers gave their father.[5]

Company history

[edit]

Fossil was founded in 1984 as Overseas Products International by Tom Kartsotis, a former Texas A&M University student living in Dallas from a suggestion by his older brother, Kosta Kartsotis, a merchandising executive at Sanger-Harris. Kosta told his younger brother about the potential large profits that could be made in importing retail goods made in the Far East, specifically in importing moderately-priced fashion watches.[1] Their main product was fashion watches with a retro look. In 1990, they introduced leather goods under the Fossil brand, and the Relic line of watches.

Fossil had its initial public offering in 1993.[1][6]

Zodiac Watches was a Swiss brand that had been operating since 1882 when Fossil acquired it from Genender International in 2001 for $4.7 million.[7] Fossil's desire to establish a Swiss presence led to the purchase of the Zodiac Watch brand and a complete retooling of that line to reflect a retro modern 1970s style in a higher end watch. The 2004 purchase of Michele Watch completed the cycle by offering a high-end Swiss watch with a designer flair.[citation needed]

In September 2007, Fossil was accused of infringing a patent owned by Financial Innovations Systems, LLC, in a lawsuit filed in the Northern District of Texas. The case was settled for an undisclosed amount and dismissed shortly thereafter.[8]

The Watch Station International chain was purchased from Luxottica/Sunglass Hut in December 2007.[9][10]

Fossil has design studios in Biel, Switzerland, close to Rolex as well as manufacturing facilities in China and distribution centers in Dallas, Germany, and Asia.[11]

In 2012, Fossil, Inc. agreed to purchase Skagen Designs and some of its partners for approximately $225 million in cash and 150,000 Fossil shares. The total value paid by Fossil would be approximately $236.8 million.[12][13]

In early 2013, Fossil introduced their upscale and more expensive "Fossil Swiss" line of watches which are made in Switzerland.[14][15]

In November 2015, Fossil acquired Misfit for $260 million, with plans to incorporate Misfit's technology into traditional-looking watches.[16]

In 2021, the company cut their number of employees from 10,200 to 7,500.[17]

In 2022, Fossil Group appointed Lisa Marie Pillette as Senior Vice President and Chief Marketing Officer.[18]

In 2023, Fossil Group Inc.'s revenue have declined from $3.5bn in FY15 to $1.7bn in FY22, so that trajectory remains the same as the company continues to decline and tend to be almost loss-making on an operating basis, that is reflecting its complete lack of competitiveness. It is trading at a deep discount to its equity value, which suggests that there is a value until most of these questions are asked about relating to corporation. This is due to the fact that the company has little brand value remaining, which reflected in its abnormally large SG&A expense and actually declined about 7 of the last 8 years as the business rationalizes operations globally.[19]

In January 2024, the company announced that it would leave the smartwatch business. [20]

Licensed business

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Original Fossil logo (1985–2015)
Second Fossil logo (2015–2023)

Fossil has had financial success with its own brands and this success has led a number of deals for licensed watch lines. In 2001, Fossil collaborated with designer Philippe Starck to create the Starck with Fossil watch collection. The collection features ultra-modern designs and unique movements. Other licensed watch lines that Fossil designs, manufactures, and distributes include Burberry, DKNY, Emporio Armani, Armani Exchange, Columbia Sportswear, Diesel, Frank Gehry, Karl Lagerfeld, Tory Burch, Kate Spade, Michael Kors, Callaway Golf, Davis Cup, Marc by Marc Jacobs, Skagen Designs, Michele, and Adidas. When referencing Fossil's watch lines, they are generally regarded as a "manufacturer"; Fossil also designs and manufactures their own movements under the Fossil Twist Line.[21]

Special products

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The Fossil Wrist PDA released in 2003, which runs Palm OS

In addition, the company produces collectibles, some of which are based on popular films or pop culture characters. Previous designs include: Superman; Batman; Wonder Woman; Elvis Presley; Pirates of the Caribbean; Flash; Green Lantern; Snoopy, Pokémon; Star Wars; Chronicles of Narnia; Cars; The Matrix and Harry Potter.

In 2003, the company released the "Fossil Wrist PDA" wristwatch computer which is a tiny Palm OS-based PDA worn like a watch. In 2006, Fossil released a Caller ID watch.[22]

In 2006, Fossil teamed up with the National Football League in the United States to make the official watch collection for each team.[23] Fossil also caters to special markets that seek to customize products.[24]

Websites

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Fossil Groups' e-commerce website, fossil.com, has a total of 364 stores as of the 2010 fiscal year review that cut across the world such as Fossil UK, Fossil USA, Fossil India, and even in Africa within nations like Fossil South Africa, and Fossil Nigeria.

Awards

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Fossil won awards for "Most Effective Use of Online Creative" and "Best of Show" awards for the 6th Annual DFWIMA Excellence in Interactive Marketing (in 2006).[25]

Fossil has also been voted one of the Top 100 Best Companies to work for in the U.K in 2013 and 2015.[26]

In 2016, Fossil won Fashion Tech Collection of the Year for their connected designer smartwatches and jewellery.[27] Their analog smartwatches and connected jewellery span across their licensed brands such as Diesel, Emporio Armani, Michael Kors, and Kate Spade.[28]

References

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  1. ^ a b c "Fossil Company History", Funding Universe
  2. ^ "Fossil 2010 Annual Report" (PDF). Archived from the original (PDF) on 2011-09-27. Retrieved 2011-07-18.
  3. ^ a b c d e Fossil Group Financial Statements (PDF), Fossil Group, 27 February 2020, retrieved 28 February 2020
  4. ^ "Fossil Group - Brands". Retrieved 2017-10-12.
  5. ^ McHugh, Josh, "Wrist-Top Revolution: How fashion watchmaker Fossil teamed up with Microsoft and Palm to change the face of wearable computing", Wired, Issue 11.04, April 2003.
  6. ^ Wood, Sean, "Watchmaker Plans IPO to Fund Acquisitions, Expansion", Dallas Business Journal, February 7, 1992, p. 3.
  7. ^ "QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934: For the quarterly period ended: October 6, 2001"
  8. ^ "Docket: Defendant: Fossil Inc"
  9. ^ "Form 10-K". www.sec.gov. Retrieved 2020-09-23.
  10. ^ "Canadian Trademarks Details: WATCH STATION INTERNATIONAL — 0879321 - Canadian Trademarks Database - Intellectual property and copyright - Canadian Intellectual Property Office - Innovation, Science and Economic Development Canada". {{cite journal}}: Cite journal requires |journal= (help)
  11. ^ Halkias, Maria, "Fossil watches empire grow: Popular company marks 20th year", The Dallas Morning News, January 8, 2005
  12. ^ Thompson, Steven R., "Fossil to acquire accessory maker for $225M", Dallas Business Journal, Tuesday, January 10, 2012
  13. ^ "Fossil to acquire accessory maker for $225M", Yahoo! Finance, Zacks Equity Research, Wed, January 11, 2012
  14. ^ "Introducing Fossil Swiss", Fossil corporate blog, February 2013.
  15. ^ Steigrad, Alexandra, "Fossil Adds Swiss Men's Watches", Women's Wear Daily, February 7, 2013
  16. ^ "Fossil acquires wearable maker Misfit for $260 million", The Verge, November 12, 2015.
  17. ^ "What happened to Fossil watches". CNBC. 2021-06-04. Retrieved 2021-06-07.
  18. ^ "FOSSIL GROUP, INC. ANNOUNCES THE APPOINTMENT OF LISA MARIE PILLETTE AS CHIEF MARKETING OFFICER". Yahoo! Finance. Retrieved 16 June 2023.
  19. ^ Research, Welbeck Ash (2023-05-04). "Fossil Group: Decline Toward Zero In Real Time (NASDAQ:FOSL) | Seeking Alpha". seekingalpha.com. Retrieved 2023-07-28.
  20. ^ Song, Victoria (2024-01-26). "Fossil is quitting smartwatches". The Verge. Retrieved 2024-01-27.
  21. ^ FOSSIL Watches, Handbags, Wallets & Clothing: About
  22. ^ Segan, Sascha, "Fossil To Sell Caller ID Watch" Archived 2009-04-14 at the Wayback Machine, PC Magazine, September 28, 2006
  23. ^ "Fossil to make NFL watch". 2006-10-04.
  24. ^ "Fossil Special Markets Division" Archived 2006-12-02 at the Wayback Machine, Fossil corporate
  25. ^ "Excellence in Interactive Marketing Awards (EIMA)" Archived 2007-01-01 at the Wayback Machine, DFW Dallas-Fort Worth Interactive Marketing Association
  26. ^ "Accreditation". Best Companies. Retrieved 2020-09-23.
  27. ^ "Wareable Tech Awards 2016: All the winners revealed". Wareable. 2016-10-27. Retrieved 2020-02-11.
  28. ^ "Wareable Tech Awards 2016: All the winners revealed". 27 October 2016. Retrieved October 12, 2017.

Further reading

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32°58′47″N 96°42′09″W / 32.9798°N 96.7025°W / 32.9798; -96.7025

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