Fossil Group Inc. (FOSL) has been challenged over the past decade, given the emergence of smartwatches at the expense of its core traditional watch market leadership position. The company responded by shifting its focus on designing "connected wearables" for its portfolio of brands which have seen some more favorable momentum in recent periods. The company just reported its latest quarterly result, which was significantly impacted by the COVID-19 pandemic with retailers shut down worldwide. Despite continued weakness expected in the coming quarter, we highlight some positives, including a relatively stable balance sheet position with limited