Fossil (FOSL) announced Tuesday the launch of eight different branded wearables this year -- including from Kate Spade (KATE) and Michael Kors (KORS) -- in 40 countries and more than 20 languages. But will its new line of more than 100 wearables be enough to help it contend with the Apple (APPL) Watch and Fitbit (FIT) as smartwatches gain steam?
Demand for smart accessories has been growing steadily. The International Data Corporation (IDC) said in December that it expects worldwide wearable device shipments to jump over 44% to 111.1 million in 2016, with the Apple Watch poised to lead the smartwatch segment of the market.
Fitbit recently introduced a new "smart fitness watch," the Blaze, earlier this year.
Both Apple and Fitbit offer various choices of interchangeable straps. A common complaint, however, is that the gadgets aren't fashionable enough.
"The industry has been slow to adapt to growing consumer desires for new styles and options for wearables," Fossil's Chief Strategy and Digital Officer Greg McKelvey said in a statement. "With the diversity of major fashion brands we offer, customers will be delighted with the sheer volume of styles and options available when shopping for a wearable that fits their personal style."
Fossil's new line of products will include both display and non-display watches and trackers.
The company said it has boosted its technological capabilities since acquiring wearables maker Misfit last November. Its new line of smartwatches will function "more like traditional watches" in that they will not need to be charged weekly or even monthly, unlike the current crop of wearables on the market, it said.
Other brands in its new collection include Chaps, Diesel, Emporio Armani, Skagen and Fossil's own namesake brand.
Fossil has logged two straight quarters of hefty double-digit earnings declines and four consecutive quarters of revenue dips, but better-than-expected fourth-quarter results helped the stock retake its 50-day line in mid-February.
Shares traded below the key level for most of 2015 and have fallen about 40% over the last 12 months. The stock closed down 5.5% on Tuesday, continuing to find resistance near its downward trending 200-day line.
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