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How Fossil Group Performed Compared to Peers

Gabriel Kane

Why Did Fossil’s Revenue and Income Fall in 3Q15?

(Continued from Prior Part)

Fossil Group and its peers

Let’s compare Fossil (FOSL) with its peers. The PE (price-to-earnings) ratios of Fossil, Coach (COH), Kate Spade (KATE), and Guess? (GES) are 7.5x, 21.9x, 31.8x, and 18.2x, respectively. Also, the PBV (price-to-book value) ratios of Fossil, Coach, and Guess? are 3.0x, 3.4x, and 1.7x, respectively.

The PS (price-to-sales) ratios of Fossil, Coach, Kate Spade, and Guess? are 0.72x, 2.0x, 2.2x, and 0.76x, respectively.

Thus, peers outperformed Fossil based on PE and PS.

ETFs and Fossil

There are several ETFs that invest in Fossil:

  • The Guggenheim S&P Equal Weight Consumer Discretionary ETF (RCD) invests 1.1% of its holdings in Fossil.
  • The First Trust Consumer Discretionary AphaDEX ETF (FXD) invests 0.96% of its holdings in Fossil.
  • The First Trust Large Cap Value AlphaDex ETF (FTA) invests 0.77% of its holdings in Fossil. The ETF tracks an index that selects and weights value stocks from the S&P 500 Value Index.

Comparison

Now let’s compare Fossil with the ETFs that invest in it:

  • The year-to-date price movements of Fossil, RCD, FXD, and FTA are -53.9%, 3.3%, 0.58%, and -6.4%, respectively.
  • The PE ratios of Fossil, RCD, FXD, and FTA are 7.5x, 15.3x, 16.1x, and 14.1x, respectively.
  • The PBV ratios of Fossil, RCD, FXD, and FTA are 3.0x, 3.7x, 3.7x, and 1.5x, respectively.

And so the ETFs outperformed Fossil Group based on price movement, PE, and PBV.

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