Disappointing results at accessory retailer Fossil sparked a selloff of the company’s stock that rippled throughout the retail sector, including the seemingly Teflon high-end retail sector.
Although Fossil’s first-quarter profit and revenue rose 4.2 percent and 9.8 percent respectively, revenue fell shy of analysts’ expectations. But it’s the company’s concerns about Europe and its lowered guidance that is sending its shares tumbling.
While quarterly earnings are in the rear-view mirror for most of the S&P 500, many of the retailers will begin reporting this week. Investors will be looking to see if growth in other areas can offset any weakness at European operations. Asia remains a key growth area for many retailers, particularly the high-end — and so too are Asian tourists shopping in Europe.