Are the estimated 20 million people who are expected to buy an Apple Watch this year having a chilling effect on traditional watch sales?
There are signs that some consumers are holding off buying other timepieces, analysts said.
“Consumers are thinking about the investment involved in an Apple Watch and may be planning ahead by not buying other watches,” said Nomura analyst Simeon Siegel.
Fossil Group, which makes watches for Michael Kors, Tory Burch, DKNY and other big designers, reported a 7 percent decline in revenues in the first quarter, to $725 million.
Michael Kors, for one, is feeling some pain. “Our watch business is not healthy in North America,” said CEO John Idol this week, adding “whether that’s something that’s a trend, whether that’s something that’s driven around other entries into the category, we’re not exactly 100 percent sure.”
Kate Spade shares are down 22 percent this year, while Michael Kors shares are off 38 percent.