Fossil, who makes watches and smartwatches for all kind of companies, had a slightly lower than expected earnings to finish out 2016, but they are looking to the future and believe that wearables is the future for them. Kosta Kartsotis, Fossil's CEO, noted that they are planning to launch over 300 SKU's of Wearables in the near future. Now that doesn't necessarily mean 300 different wearables, but there will be 300 SKU's. Showing that the company is looking to double down on wearables, which is a growth segment for the company. During the earnings call, Fossil noted that while traditional watch sales had dropped, smartwatches and other wearables were off-setting them. Noting that the Fossil Q and Skagen Connected lines were their best sellers in 2016. But also stating that Michael Kors Access was doing very well for them.
Wearables won't be what saves Fossil, however. While they declined by about $33 million in the fourth quarter, Fossil is still far from being out of hot water. Wearables haven't been gaining all that much traction for Fossil, which isn't surprising, given the fact that has been the case across the wearable industry. With many companies opting to take their resources away from smartwatches in particular and put them into things like virtual reality, which are already doing better than wearables. The only wearables that seem to be doing well in the market are actually fitness bands, and simple wearables like that. It could be due to the fact that they are easier to use, but also because they are often times much cheaper than a traditional smartwatch.
Fossil does make some of the best looking smartwatches on the market, and they aren't as costly as other watch makers smartwatches, like TAG Heuer Connected. However, they have not yet announced any Android Wear 2.0 smartwatches. But with them announcing that they'll be bringing about 300 new SKU's of wearables in the near future, that will probably change sooner rather than later. It's also important to note here, that while Fossil's CEO said they will bring out 300 new SKU's, that doesn't mean they'll all come out this year, some may be planned for a bit later on down the road.