Movado Group, Inc (MOV), Fossil Inc (FOSL): This Fashionable Company Appears to be Defying Macro Trends

The problem with investing in Movado Group, Inc (NYSE:MOV) instead of Fossil is that if the stock and real estate markets begin to suffer, then much of this disposable income is lost, which will likely lead to a decrease in sales for Movado watches. While Fossil isn’t resilient either, the middle-income consumer is already suffering. This consumer hasn’t seen gains from investments, so at least we already know where the Fossil consumer stands.

If you’re looking for another company with a focus on fashionable trends, (especially in America and Europe), then you might be tempted to consider the more apparel-focused Guess?, Inc. (NYSE:GES). Like Fossil, Guess? upped its full-year EPS guidance. Guess? now sees $1.78 to $1.92 instead of its earlier forecast of $1.70 to $1.90. But this is mostly due to cost-cutting and expense management, not revenue growth. Unlike Fossil, and mostly due to a weak consumer in China and Southern Europe, Guess?, Inc. (NYSE:GES) has lowered its full-year revenue guidance to $2.56 billion to $2.59 billion from $2.57 billion to $2.61 billion.

Conclusion

Based on the company’s strategy and various price points, Fossil is likely to be the most resilient company in this group. Fossil offers fashionable products at reasonable prices, is performing well on the earnings front, and despite a cautious consumer at the present time, should remain a long-term winner going forward. All of this adds up to Fossil being worth a Foolish look.   

The article This Fashionable Company Appears to be Defying Macro Trends originally appeared on Fool.com and is written by Dan Moskowitz.

Dan Moskowitz has no position in any stocks mentioned. The Motley Fool recommends Fossil and Guess?. The Motley Fool owns shares of Fossil, Guess?, and Movado Group (NYSE:MOV).

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