Fossil Group (FOSL) designs, promotes, and distributes fashion accessories. They security license brands from high-end designers adore Michael Kors (KORS), DKNY, Armani Exchange, and Marc Jacobs. FOSL recently introduced a line of time pieces from Tory Burch silicone iPhone 5 case. Fossil carries a particular emphasis on designer watches and jewellery that it sells through department stores, unique shops, wholesalers as well as its own retail outlet and catelogues.
FOSL has a high Chaikin Power Gauge stock rating and since it issued a very strong finally earnings report on November eleventh, Fossil has been outperforming the market. FOSL has bested Wall Street estimates regarding 8 quarters in a row to both the the top and the bottom line. In their the particular earnings report, they came in to earnings per share of $1. 96 vs . estimates of $1. 82. Consensus earnings estimates should be $7. 25 for 2014 additionally $8. 15 for 2015.
Precious Group had been underperforming the market prior to this its November earnings release caused by slowing North American sales growth, fx currency risk in its international internet marketing business and an important licensing agreement marked on your calender for renewal next year with Education Kors.
The short sellers contained built up a large short position when FOSL and were clearly amazed by the strength in 3rd using a earnings and revenue gains. Some sort of stock gapped up over 10% to a high of 115. 20, along with the announcement of an early extension generally the Michael Kors licensing agreement out of 2024 and a $1 billion buyback schedule.
Wall Street analysts are still divided regarding the stock, with Piper Jaffrey trimming back on its estimates for 2014/2015 can be November 11th earnings report, as well as Jeffries analyst Randal Konik higher his earnings estimates and elevated his price target to $150 from $140. There is also some involve about the impact that the iWatch on Apple (AAPL) will have on FOSL's high-end business.
These conflicting appréciation have created an attractive buying opportunity for market players as Fossil, which pulled back in to $107, is now bouncing off which unfortunately oversold level and is starting to advantage from demand for high-end retailers. With a great balance sheet and improving price/volume actions, FOSL is an excellent buy candidate included in the strong retail sector.
Fossil Area has a bullish Chaikin Power judge stock rating based on strong Fiscal Metrics, positive Earnings Performance additionally improving Technicals. The large short pose represents potential demand for FOSL's companies as shorts will be pressured in order to cover in their quest for better performance straight into the year-end. If FOSL makes a most recent high above $115. 20, choosing the perfect by shorts could push the entire stock to $125.
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