CITIZEN Signs Exclusive Multi-Year Agreement
to License Fossil Group Hybrid Smartwatch Technology
TOKYO, Oct. 2, 2018 /PRNewswire/ -- Fossil Group
(NASDAQ: FOSL) and CITIZEN Watch Company, Ltd. today announced that
the companies have entered into a global strategic technology
licensing partnership designed to expand the worldwide reach and
scale of hybrid smartwatches. The partnership leverages CITIZEN's
globally-respected watch movement expertise while providing CITIZEN
access to Fossil Group's hybrid smartwatch technology.
Specifically, as part of the agreement:
- CITIZEN will manufacture hybrid smartwatch movements
incorporating Fossil Group's technology.
- CITIZEN will sell hybrid smartwatch movements and complete
watches to the broader watch industry.
- CITIZEN and Fossil Group will collaborate in bringing future
innovation to the smartwatch category.
Since 2016, the growing hybrid smartwatch category has been
defined by Fossil Group and its portfolio of watch brands as
timepieces that retain the classic aesthetic of analog watches, but
also offer discreet notification and tracking capabilities without
the need for charging. Hybrid smartwatches are projected to make up
a significant percentage of smartwatch shipments by 2022, according
to Juniper Research.
CITIZEN has worked in the technology category for many years
and, in 2006, it introduced the world's first Bluetooth-enabled
watch. In 2012, it revealed the first Bluetooth-enabled,
solar-powered watch, the Eco-Drive, which does not require the
battery to be replaced. In 2016, Citizen globally expanded its
distribution and added new SKUs to its portfolio. CITIZEN will
launch the world's smallest and thinnest Eco-Drive Bluetooth watch
in 2018. Citizen also has a dedicated analog watch which uses
solar-powered hands.
"Given the size and growth of the smartwatch market, CITIZEN is
going seriously into the smartwatch market," said Mr. Tokura,
president and chief executive officer of CITIZEN. "It is with
strong determination that we trigger this partnership and enter
this category. We, CITIZEN and Fossil Group, will maximize our
combined strengths to become leading companies in the smartwatch
category."
"Our partnership with CITIZEN, the world's largest watch and
movement manufacturer, will enable us to broaden and accelerate the
awareness and adoption of hybrid smartwatches," said Kosta Kartsotis, chief executive officer at
Fossil Group. "This transaction is the result of our technology
investments and demonstrates the capabilities we've developed in
the wearables category and the larger watch industry. Together with
CITIZEN, we'll leverage the technology to drive scale in the hybrid
smartwatch market that will bring innovative and compelling new
products to the watch market and improve our product costs."
About CITIZEN Watch Co., Ltd.
CITIZEN WATCH, marking
its 100th anniversary in 2018, is a true manufacture
d'horlogerie with a comprehensive manufacturing process that
extends from creating a watch's individual components to its final
assembly. The company operates in more than 130 countries around
the world. Since its founding in 1918, CITIZEN has held the belief
of "Better Starts Now" — that is, no matter who you are and what
you do, it is always possible to make something better, and now is
the time to start doing it. Sharing this belief, we have made
watches, invented and improved technologies and explored the future
of watches, such as our proprietary light-powered Eco-Drive
technology and state-of-the-art satellite-synchronised
timekeeping.
About Fossil Group, Inc.
Fossil Group, Inc. is a
global design, marketing, distribution and innovation company
specializing in lifestyle accessories. Under a diverse portfolio of
owned and licensed brands, our offerings include fashion watches,
jewelry, handbags, small leather goods and wearables. We are
committed to delivering the best in design and innovation across
our owned brands, Fossil, Michele, Misfit, Relic, Skagen and
Zodiac, and licensed brands, Armani Exchange, BMW, Chaps, Diesel,
DKNY, Emporio Armani, kate spade new york, Marc Jacobs, Michael Kors, PUMA and Tory Burch. We bring each brand story to life
through an extensive wholesale distribution network across
approximately 150 countries and 500 retail locations. Certain press
release and SEC filing information concerning the Company is also
available at www.fossilgroup.com.
Safe Harbor
Certain statements contained herein that are not historical facts,
including gross margin improvements, constitute "forward-looking
statements" within the meaning of the Private Securities Litigation
Reform Act of 1995 and involve a number of risks and uncertainties.
The actual results of the future events described in such
forward-looking statements could differ materially from those
stated in such forward-looking statements. Among the factors
that could cause actual results to differ materially are: changes
in economic trends and financial performance, changes in consumer
demands, tastes and fashion trends, lower levels of consumer
spending resulting from a general economic downturn, shifts in
market demand resulting in inventory risks, changes in foreign
currency exchange rates, risks related to the success of the
multi-year profit improvement initiative, risks related to our
connected accessories and the outcome of current and possible
future litigation, as well as the risks and uncertainties set forth
in the Company's Annual Report on Form 10-K for the fiscal year
ended December 30, 2017 filed with
the Securities and Exchange Commission (the "SEC"). These
forward-looking statements are based on our current expectations
and beliefs concerning future developments and their potential
effect on us. While management believes that these forward-looking
statements are reasonable as and when made, there can be no
assurance that future developments affecting us will be those that
we anticipate. Readers of this release should consider these
factors in evaluating, and are cautioned not to place undue
reliance on, the forward-looking statements contained herein.
The Company assumes no obligation to publicly update or revise any
forward-looking statements, whether as a result of new information,
future events, or otherwise, except as required by law.
View original content to download
multimedia:http://www.prnewswire.com/news-releases/fossil-group-and-citizen-partner-to-grow-the-global-hybrid-smartwatch-market-300722563.html
SOURCE Fossil Group, Inc.