Piper Jaffray Remains Bearish on Fossil Group (FOSL) Following Swatch's Pre-Announcement

Piper Jaffray reiterated an Underweight rating and $25.00 price target on Fossil Group (NASDAQ: FOSL) following the negative pre-release of Swatch Group. Piper Jaffray believes that Swatch's pre-announcement is another sign that the industry's structural issues remain.

Analyst Erinn Murphy commented, "We are providing our thoughts on FOSL (UW rating, PT of $25) following the negative pre-release of Swatch Group, the largest watch manufacturer in the world (~8.5B CHF in sales in 2015). To wit, sales are now forecast to be down 12% in 1H (note: current consensus implies down 8%). Further, EBIT profitability is forecast to be down 50-60%. While the 1H earnings call will be next week Thursday (July 21), the company did note in its press release that HK was particularly weak as were parts of Europe including France and Switzerland. Separately, we also anticipate to get June's Swiss Watch export data next week as well."

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 $30.67 yesterday.

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