I really hope management does not on the way and is too greedy about this proposal. A combination with Citizen would be a game changer...they have done a fantastic job in growing and keeping Bulova and Citizen relevant in the US. Adding Fossil, Michael Kors and the other brand would create a clear leader in the mid-price market with many many synergies. Moreover Fossil already uses a lot of Citizen Japan-made movements and Citizen can leverage much much better out smartwatch technology and patents. We all know there is a management succession problem at Fossil and becoming part of a bigger, healthier, watch company with clearer vision and heritage could also help a lot on that front. I am truly excited for this to happen soon and really hope they can make it happen!
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I think you raise fair points - Fossil weakest link for a strategic buyer are the stores for a product that is moving mostly to e com. Unless Fossil sheds the stores it carries even faster while supporting the move to digital maintaining its brands relevant (so far not good) , or it will be hard for the company to find interest. A private equity take over maybe more likely or as far as the US is concerned it would have to be a retailer that could find some synergies with Fossil network. Signet comes to mind or maybe Movado but it is not an obvious fit. This entire discussion would make more sense if Fossil had done a better job at managing its brands (including licenses) and kept more focus on design and relevance.
Citizen is not seeking to pay rent on leases obligations or royalties to brands. It owns brands outright with durable names in watch making. Fossil has only returned profits because of cost cutting measures not organic sales growth. Fossil US business is on downtrend, citizen could penetrate US and Asia with other strategies. Citizen has no use for leather or accessories business. Citizen would not want to diminish its capital structure or returns given fossils debt rating and poor growth.
I would hope a brand such as Bulova wouldn't align themselves with the brand.
I agree the longer the company remains stale the more this is a possibility and could do much better with Bulova and Citizen. I also heard that a tie up with Signet was a possibility.
Citizen is wouldn’t take that risk.
Well, this news didn't help the Fossil stocks as they took a dive today!
It s an interesting prospect. I wonder who would take the lead and of it would cause more layoffs in Dallas.
Stupid. This is not even a discussion