https://seekingalpha.com/article/4368178-fossil-group-fosl-q2-2020-results-earnings-call-transcript
4 replies (most recent on top)
I am begging all of us reading this who still work at Fossil, it’s time for us to leave. A lot of good people have left (voluntarily) and a lot of good people were let go. There is no reason to stay. The culture is dead. The leaders have no confidence or trust from the employees. The company can not compete. No one is buying a gen 5 smart watch.
KK has been talking about facing “business headwinds” since at least 2014. It’s 6 years later and what has changed? Fossil never did what it promised the first iteration of NWF 1.0 - the brand offers too much and the customer is fatigued. Go back to what Fossil is known for - a great looking analog watch or leather good at a great price. This is exactly the kind of economy that favors affordable “luxury” and Fossil is bungling it up again.
According to CFO new world 2.0 will carryover into next year and aggressive expansion was implemented for cost savings on organizational expenses and personnel, of course there’s a cap on organizational efficiency benefits mainly that you can’t cut SG&A forever to boost profit and curry favor with Wall Street. Digital is showing a positive number because it’s been the only game in town for most retailers so that’s not a big deal. What will happen when this environment tampers, how do you relay that to stores? You probably can’t, as people trickle into malls they’ll want to be seen in halo stores that drive traffic and status seeking. Would liked to have heard a breakdown of what brand(s) are selling in Asia? That’s really where it’s at in terms of relevance.
Same Kosta BS as on every other call. He needs to go. Let Boyer take over.