What’s gotten into Kosta N. Kartsotis, chairman and CEO of Richardson-based Fossil Group Inc.? Last week, the retail exec sold off 520,281 shares of Fossil stock for about $5.5 million, according to SEC filings. Kartsotis also got rid of 1,075,000 shares worth more than $12.1 million in late May. According to reports, he still owns around 10 percent (or at least $40 million) of the company, which designs, markets, and distributes consumer fashion accessories, including men’s and women’s watches.
Like many retailers, Fossil—which did not respond immediately to a request for comment—has had a tough time of late, with its revenue and stock price both heading south. So the recent sales by Kartsotis might be explained in one of two ways, says David Johnson, a business analyst for KRLD-AM (1080).
“On the one hand, he may be doing exactly what any bright CEO does, which is diversify your holdings. You don’t put all your eggs in one basket—even if you own the basket,” Johnson says. “On the other hand, the company is a lot less attractive than it used to be. All retail is suffering, and Fossil is a big multinational company that’s scrambling. People don’t wear watches like they used to—especially millenials. But when they do, they’re wearing smartwatches—and Fossil was late to the game.”
