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.
With an estimated 20% of turnover coming from accessories, we estimate the contribution of watches to be £92 million in the UK.
Additional challenges could still be to come, as a note in the company’s 2017 accounts warns about the potential impact of House of Fraser stores where it runs Time Station multi-brand watch concessions. The accounts were filed before the holding company of Sports Direct bought House of Fraser and limited the number of store closures.
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, Emporio Armani, Skagen, Fossil and Diesel; plus ecommerce sites for the brands, concessions and owned boutiques.