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