Fossil Group Inc (NASDAQ:FOSL) has been hard hit by a consistent downturn as its stock continues to experience a downtrend over the past four years.
It seems that it will take quite a lot to get the company’s stock back on track and chances of getting to its former highs also seem low especially considering the latest guidance. The stock was valued at $135 per share just four years ago but has since then tanked to $8. Things are expected to get worse following the latest guideline from the company which forcasted that the stock will drop by as much as 8.5 percent.
Fossil also reported its adjusted loss for the second quarter at $0.23 per share which surpassed the consensus estimate which was a loss of $0.34 per share. The stock performance has been quite discouraging to investors especially because it is most likely to continue its downward trend. This has led to questions as to whether there is any chance of recovery.
“Even as we operate in a market and retail environment experiencing unprecedented disruption, we believe we are focusing on actions that can deliver solid results and returns for our shareholders over time,” stated Fossil CEO Kosta Kartsotis.
Fossil stockholders have had one of the worst years in 2017 due to the poor performance of the stock as it continues to take a beating. The company’s shares have tanked by as much as 57 percent this year. The stock tanked by 21 percent following the latest earnings report. The current stock price is also below the 50-day average as well as the 200-day average. However, there was a brief bullish divergence in May and June this year but the forecasts have suggested that the bearish trend will prevail.
Fossil executives are still optimistic and believe that they can still turn things around. The CEO revealed in his statement that the company is currently working on strategies that are aimed at boosting growth, though he did not go into details.
Fossil stock closed the latest trading session on Wednesday at $7.86 after tanking by 2.24 compared to the value of the stock during the previous close.