Fossil’s Q2 Smartwatch Net Sales Fell 18% in Constant Currency
Fossil Group’s smartwatch sales “lagged” in Q2, with growth in Asia more than offset by declines in the Americas and Europe, said CEO Kosta Kartsotis on an earnings call Wednesday. Net sales in Fossil’s smartwatch category were down 18% in…
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constant currency, said the company. “Heading into holiday, we expect sales trends to improve” with Fossil’s recently launched Gen 6 Hybrid smartwatch platform and its “refresh” of Gen 6 products to include Google’s Wear OS 3 operating system, Kartsotis said. “Both platforms will work on our proprietary new smartwatch app, which will have an improved wellness features set." Gen 6 with Wear OS 3 smartwatch and the Fossil app “are planned to launch in time for holiday 2022 selling,” he said. “We are particularly excited about the smartwatch app as it will enable us to get first party data and engage with our customers at a higher level.” Based on the negative “macro dynamics” that intensified in Q2, “we are taking a more cautious view of the consumer across all three of our geographies” for second-half 2022, said Kartsotis. Fossil’s revised outlook “reflects that our wholesale business will remain challenging and that we have reduced our prior expectations for a return to normalcy in our China business this year,” he said.