Fossil's Wearable Device Push Underpins Sales, Driving Up Shares

Fossil Group Inc.'s efforts to turn around a three-year sales decline are making headway While revenue fell in the period, it still topped projections, sending the shares up as much as 12 percent Wednesday morning Fossil, which makes watches under its own brands and also for Michael Kors, Armani and other labels, is betting on wearable devices to spur revenue growth.

Sales of so-called connected watches rose in all regions, while traditional watches declined, the company said in a statement late Tuesday "While overall sales were down as expected, we generated solid growth in wearables," Chief Executive Officer Kosta Kartsotis said Fossil had a loss of 16 cents a share in the period, while analysts estimated a loss of 57 cents.

In July, Fossil announced an agreement with BMW to design and develop traditional watches and smartwatches, with the first BMW-branded watch collection becoming available as early as next year. . Source