Jefferies Cuts Price Target on Fossil Group (FOSL) Following 1Q Miss

Jefferies maintained a Hold rating on Fossil Group (NASDAQ: FOSL), and cut the price target to $32.00 (from $40.00), following the company's 1Q earnings report. Fossil reported sales of -9%, compared to the Street's -8% estimate. EPS of $0.12 came in below the Street's $0.15 estimate. The weakness was largely driven by a deterioration of trends in the wholesale channel across US and Europe.

Analyst Randal Konik commented, "Weaker than expected 1Q results showed that the watch craze has ended, dept. store sell-throughs are declining, and technology shifts continue to disrupt the market. All this points to a more difficult operating environment for FOSL, given its significant exposure to traditional watches. Maintain Hold rating."

For an analyst ratings summary and ratings history on Fossil click here. For more ratings news on Fossil click here.

Shares of Fossil closed at $40.10 yesterday.

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