Fossil Group (NASDAQ:FOSL) shareholder returns have been stellar, earning 102% in 1 year

It hasn't been the best quarter for Fossil Group, Inc. (NASDAQ:FOSL) shareholders, since the share price has fallen 18% in that time. But that doesn't detract from the splendid returns of the last year. We're very pleased to report the share price shot up 102% in that time. So some might not be surprised to see the price retrace some. More important, going forward, is how the business itself is going.

Since it's been a strong week for Fossil Group shareholders, let's have a look at trend of the longer term fundamentals.

View our latest analysis for Fossil Group

Because Fossil Group made a loss in the last twelve months, we think the market is probably more focussed on revenue and revenue growth, at least for now. When a company doesn't make profits, we'd generally hope to see good revenue growth. That's because it's hard to be confident a company will be sustainable if revenue growth is negligible, and it never makes a profit.

Fossil Group actually shrunk its revenue over the last year, with a reduction of 19%. We're a little surprised to see the share price pop 102% in the last year. It just goes to show the market doesn't always pay attention to the reported numbers. Of course, it could be that the market expected this revenue drop.

You can see how earnings and revenue have changed over time in the image below (click on the chart to see the exact values).

We consider it positive that insiders have made significant purchases in the last year. Having said that, most people consider earnings and revenue growth trends to be a more meaningful guide to the business. It might be well worthwhile taking a look at our free report on Fossil Group's earnings, revenue and cash flow.

A Different Perspective

We're pleased to report that Fossil Group shareholders have received a total shareholder return of 102% over one year. Notably the five-year annualised TSR loss of 9% per year compares very unfavourably with the recent share price performance. The long term loss makes us cautious, but the short term TSR gain certainly hints at a brighter future. It's always interesting to track share price performance over the longer term. But to understand Fossil Group better, we need to consider many other factors. Consider for instance, the ever-present spectre of investment risk. We've identified 3 warning signs with Fossil Group (at least 1 which is significant) , and understanding them should be part of your investment process.

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying.

Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on American exchanges.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.