Now Fossil's In Trouble

Fashion brands such as Gucci, Hermes' and similar are here
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Now Fossil's In Trouble

Post by TemerityB » February 3rd 2018, 10:48am

What a news week. At this rate, we'll be meeting Jimmy, Henry, and Maury in a parking lot and buying watches from Henry's trunk.

Fossil shares tumble after $497M refinance announcement

Struggling watchmaker Fossil Group has bought itself more time — but at a hefty price.

The company said Wednesday it was able to refinance $497 million in debt — but at interest rates well above existing levels.

The added financial burden drove down shares of the Richardson, Texas, company 13.3 percent, to $7.96, on Wednesday.

It is the second such refinancing at higher rates within 12 months.

Sales of the struggling accessories firm, which makes timepieces for Michael Kors, Karl Lagerfeld, Marc Jacobs, DKNY and more than a dozen others, have been moving in the wrong direction for at least a year, falling 10 percent in the nine months ended Sept. 30.

“It is difficult to have any confidence in a turnaround [with] sales and margins declining significantly,” Wells Fargo analyst Ike Boruchow wrote in a research note.

Last month Fossil shuttered its Fifth Avenue store in the Big Apple; it has four remaining.

Also in January, there were reports that private equity firm Thoma Bravo was considering a bid to acquire Fossil for about $15.75 per share.

But the refinancing is likely a sign that “there is no imminent relief from its debt burden with a potential strategic partner,” Macquarie Capital analyst Laurent Vasilescu said in a research note.

Fossil’s problems stem, in part, from a broader trend away from traditional watches. Fossil bet big two years ago on smartwatches, but analysts says that Fossil’s competition with Apple watches isn’t going well.

It tried offering discounts of up to 50 percent over the holidays, Vasilescu said. ... ement/amp/
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Re: Now Fossil's In Trouble

Post by conjurer » February 3rd 2018, 11:03am

Henry, you're a good kid, I've been good to you, you've been good to me. But there's something really unreasonable going on here. Jimmy's being an unconsionable ball-breaker. I never agreed to 3 points on top of the vig! Am I something special? Some sort of schmuck on wheels?

--Morrie, Goodfellas
I find tv watches to be like the guys who raise their truck you need a fricken ladder to get in. It’s a attempt to look cool... that’s all.

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