Fossil Group, Inc. (NASDAQ:FOSL) $FOSL

Fossil Group, Inc. is a global designer of consumer fashion accessories, notably watches and jewelry, handbags, small leather goods, belts, and sunglasses.

The company gets about 55% of sales from brands it pays royalties to license and about 45% from brands the company owns. Licensed brands include Emporio Armani, DKNY, Diesel, Burberry, Michael Kors, Adidas, Marc Jacobs, Karl Lagerfeld, Tory Burch, and Kate Spade. Company owned brands include Fossil and Skagen.

Fossil is a large brand (about $2 billion in sales at retail and $1.3 billion in revenue booked by the company). Skagen is a small brand. Fossil gets most of its sales and profits from two brands: the Fossil brand (which it owns) and the Michael Kors brand (which it licenses).

The stock is extraordinarily cheap. It is much, much cheaper than either Swatch or Movado, which we have covered in previous notes. It’s not an exaggeration to say that Fossil trades for about half the price of a “normal” stock in “normal” times.

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