After seven days, Fossil Group (NASDAQ:FOSL) has added US$10m to its market capitalization, but investors from five years ago have seen a 90% decline.

Since Fossil Group did not turn a profit in the previous year, it is doubtful that the share price and earnings per share (EPS) will be highly correlated. Revenue is perhaps our best alternative after this. Good revenue growth is typically expected when a company is losing money. This is due to the fact that it is difficult to have faith in a business that is unprofitable and has minimal revenue growth.

Over the past five years, Fossil Group has experienced an annual decline in revenue of 10%. To put it plainly, that places it in an unappealing cohort. Therefore, the 14% annual decline in the share price during the same period is not entirely shocking. We are really cautious about this kind of pricing performance, especially in light of declining sales. Paradoxically, the contrarian investor may benefit from that behaviour if there are solid grounds to believe that things will get better.

The graphic below shows the company’s earnings and revenue (over time) (click to see the actual data).

While the market has increased by 26%, Fossil Group’s shareholders have lost 63% of their value this year. But remember, even the finest equities will occasionally do worse than the market over a whole year. Sadly, the previous year’s

A disastrous run of performance culminates in a 14% annual loss for the shareholders over a five-year period. Long-term share price weakness is generally not a good indicator, but investors who are contrarian may want to look into the stock in the hopes of a recovery. Although the many effects that market conditions can have on the share price are certainly worth taking into account, there are other aspects that are even more

Over a five-year period, a catastrophic run of performance results in an annual loss for the shareholders of 14%. Even though long-term share price decline is typically not a strong indicator, contrarian investors could wish to investigate the stock in the hopes of seeing a recovery. While it is important to consider the many impacts that market conditions might have on share price, there are other factors that are even more

If significant insider purchases are made, our opinion on Fossil Group will improve. Check out this free list of expanding firms with significant, recent insider buying while we wait.

Note that this article’s market returns are the market weighted average returns of equities that are currently traded on American exchanges.

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With the share price rising by 23% in the past month, shareholders should be pleased. But will that make up for all the hurt caused by the five years of declines? Not likely. Yes, throughout that time the share price has dropped by an astounding 90%. It’s true that the corporation may be turning over a new leaf given the current upturn.

new leaf, but that’s debatable. Whether the business can justify a long-term recovery is the key question. In this case, our sympathies are with the shareholders. It serves as a helpful reminder of the value of variety and the fact that life is about more than just money.

Though the company’s market cap has increased by US$10 million in the last seven days, there is cause for optimism. Let’s try to figure out what has caused the stockholders’ five-year loss.

View the most recent analysis we have for Fossil Group.