Cowen Cuts Price Target on Fossil Group (FOSL) to $57 Following 2Q EPS Beat

Cowen reiterated a Market Perform rating on Fossil (NASDAQ: FOSL), and cut the price target to $57.00 (from $65.00), following the company's 2Q15 earnings release. FOSL's overall GAAP EPS was $1.12 vs. guidance of $0.80-$0.91 and Street’s $0.82 estimate. Management has lowered FY15 guidance to $4.80 to $5.60 (from $5.25 to $6.05) and guided 3Q below expectations at $1.03 to $1.28 vs. Street's $1.49 estimates.

Analyst Oliver Chen commented, "Most concerning: lower sell-ins at KORS, implied 4Q reacceleration, category disruption from smartwatch, & licensed multi-brand watch portfolio may need stronger catalyst to reignite growth. Reit Market Perform & lower PT to $57 (old $65). 2Q EPS did beat on non-op gains, lower taxes & financing costs; but, FOSL missed on rev. driven by int'l weakness, while N. America was OK."

For an analyst ratings summary and ratings history on Fossil click here. For more ratings news on Fossil click here.

Shares of Fossil closed at $62.11 yesterday.

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