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Fossil's Stock Continues to Soar

May 04, 2012

I saw an interesting article last week in WWD. The piece was titled Economic Anxiety Hits Stocks. The feature was like many others that we have grown familiar to reading about. Hard times at home causes a tightening of the belt and purse strings and expenditures are subsequently reduced. What caught my eye in this piece was the chart titled 'Still Way Ahead'. The chart listed in order, those global fashion retailers who have bucked the trend and have seen their stocks flourish. In our business, two of the strongest performance indicators are comp sales and stock activiity. I have attached the chart hereto and am pleased to point out that Fossil Inc ranks #4 on the list. At closing yesterday, Fossil Inc's stock price was $136.36, an increase in excess of 70% since the beginning of the year. It's also worth noting that the price of Fossil's stock is double that of any other brand featured in the chart (which includes Lululemon, Kenneth Cole, Michael Kors, Prada, Gap...etc). I can't say that I am surprised. After all, Fossil is the only global fashion brand to have reported double digit comp store increases for 8 consecutive quarters. Outstanding. Further with each new earnings release, the company continues to reach record levels in Net Sales and Gross Profits.  

There is a 3rd major performance indicator that people in the shopping industry are quick to look at - sales per square foot. In Canada, Fossil continues to be an uber performer, with median sales in excess of $1000 psf.  

Fossil operate approximately 20 stores in Canada, and are prepared to expand, in the following targeted markets: Calgary, Vancouver, Toronto and Montreal. Size required:1200-1500 sq.ft. Property-Type: Super regional centres, Downtown street-front, and lifestyle centres. In addition, the company is actively seeking outlet opportunities in all of the above-noted cities. 
Opening Soon - Mapleview Mall (Burlington, Ontario) and Halifax Shopping Centre (Halifax, Nova Scotia).  

We're just dotting the i's and crossing the t's on several new major Fossil deals. Stay tuned for more details.

FYI - Fossil plan will open 75 stores globally in 2012. 

For additional information on Fossil, please visit their website at www.fossil.com.