US-based global design and lifestyle accessory company Fossil Group reported reducing its net loss, which fell from $85.6 million in the first quarter of 2020 to $24.4 million in the Q1 2021 report.
The improved numbers of the company came on the back of solid sales figures for Q1 2021, enabling the company to hit a gross profit of $182 million (compared with $140.4 million in the same period the year before). It was also able to cut its costs, recording $187.4 million (as opposed to $245.7 million for the same period under review in 2020). Sales of its leather and jewellery products fuelled the increased first-quarter sales.
The company has provided positive forward guidance, hinged on recovery of demand in its large outlook markets such as the US and Mainland China. Fossil stock price is up 3.55% on the day.
After completing the rounding top pattern at 12.03, the stock bounce and is now challenging the resistance at the 14.00 psychological price level. A break of this point allows the bulls to aim for the 16.00 price level, with 17.07 (1/3 March highs) and 18.00 (10 February high) serving as additional targets to the north.
On the other hand, rejection and pullback from 14.00 allow the Fossil stock price bars to aim for 12.03 (26 May/18 June lows), with additional targets at 11.46 and 10.00.
