Sales at Fossil (UK) Limited, the wholly-owned subsidiary and distributor for Fossil Inc in the UK, endured another slump in sales in 2018, with turnover falling 21% to £115 million for the year ending December 29 2018.
It is the fourth consecutive year of declining sales, leaving annual turnover 40% below its peak of £152 million in 2014, the year of the Michael Kors watches phenomenon, and its worst year since 2011.
2019 is unlikely to have brought any relief, with GfK reporting sales at sub-£500 price points falling 15% in the £100 to £500 price range in which Fossil’s brands compete.
Operating profit rose from £3.4 million to £4 million thanks to swingeing cuts to direct costs of sale and overheads.
World-wide, around 80% of Fossil Inc sales come from watch brands including Emporio Armani, Diesel, Michael Kors and Fosssil. The remainder comes from accessories.
Rival watch business Zeon, which is responsible for Vivienne Westwood, Braun, Jack Wills and Ingersoll, endured a similarly difficult year, with sales falling 23.6% to £7.2 million in the financial year ended March 31 this year.
The company says the current Brexit stalemate has created a stagnant business environment.