Despite disappointing end of 2014 sales, Fossil is focused on the future, announcing Tuesday that it has reached a ten year licensing agreement with Kate Spade, assuming its existing watch business.
Fossil CEO Kosta Kartsotis called the agreement, “yet another great example of our ability to capitalize on lifestyle brands that are poised for global expansion.” The company already has partnerships with brands like Giorgio Armani, Michael Kors, Tory Burch and Emporio Armani Swiss.
Sales in 2014 were flat at $1.07 billion, missing their estimate of $1.12 billion. Best known for its watches, this segment pulled in more than three quarters of the company’s total revenue. Jewelry sales increased but only accounted for $93 million of the total revenue.
The company is forecasting a sales decline of 5.5%-7.5% in the first quarter of 2015. “We are not entirely satisfied with our fourth quarter performance and begin 2015 intensely focused on taking advantage of the many opportunities available to us to drive future growth,” said Kartsotis.
Resource: Forbes
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