Fossil (UK) Limited sales fell by 7% in 2017, the third year in a row of contraction.
From a peak turnover of £152 million in 2014, the year that Michael Kors watches became a red hot ladies’ fashion accessory, group sales are now 24% lower at £115 million.
Worse could still be to come, as a note in the company’s 2017 accounts from Fossil UK managing director Richard Collins warns about the impact of upcoming House of Fraser store closures where it runs Time Station multi-brand watch concessions.
“An announcement has been made by House of Fraser after the reporting date that they have secured a CVA (Company Voluntary Arrangement) which will result in the closure of 24 stores that hold Fossil concessions from early 2019. The remaining 27 stores that hold Fossil concessions will continue trading,” Mr Collins discloses.
A 7% sales slide in sales is a stronger performance than the wider UK market for watches priced at under £500, which dropped by over 10%, according to retail analysis by GfK.
The company also managed to improve operating profit from £3.2 million to £3.4 million in 2017.
Fossil (UK) Limited is the wholesaler for all Fossil Group watch brands including Michael Kors, Emporios Armani, Skagen, Fossil and Diesel; plus ecommerce sites for the brands, concessions and owned boutiques.