Fossil, whose timepieces and accessories popular with the MTV generation have a retro-'50s look, is betting that the nostalgic design will also work well selling jeans and casual tops. The Gap Inc. The way Fossil executives see it, the jump into apparel is as natural as evolution. We think it's right for the brand. Still, Fossil is only dipping a toe into the apparel ocean.
Analysts support the cautious strategy.
That eases the concern of what retailing does to a company. Unlike its watches, most of which are sold in department stores, Fossil will sell clothes only at its own stores. That will help avoid fire-sale markdowns that could cheapen the brand, Erner said. Fossil traces its beginnings to 1984, when a young Texan named Tom Kartsotis visited Asia to set up an import-export business. Within a few years, Fossil found a niche in retro-looking watches and sold them in tins with nostalgic Americana designs.