Texas-based Fossil Group Inc., parent company of supplier Fossil Corporate Markets (asi/55145), has announced that its total sales for the third quarter were $688.7 million, a year-over-year decline of 7%. Revenue in the Americas fell by 15%, driven lower by poor traditional watch sales. Leather and jewelry sales also declined, the company said.

In Europe, Fossil fared better, as sales ticked up by $4 million, or 2%, strengthened by smart watch growth. Net sales in Asia were flat. Fossil said its Q3 global retail comps, which notably include e-commerce sales, were down 6% compared to the same period a year ago. Amid falling sales, Fossil’s net income suffered in Q3, as the company reported a loss of $5.4 million.

“We’re pleased to deliver third quarter sales and earnings that aligned with our expectations for the quarter,” said Kosta Kartsotis, Fossil’s CEO, in a statement. “While our business and the retail environment remain challenging, we are continuing to make progress against key strategic initiatives that tell us we’re on the right track.”                                

In its earnings statements, Fossil does not break out sales to the promotional products market. Going forward, Fossil is now forecasting a fiscal 2017 sales decline in the range of 8.5%-10.5%. For Q4, Fossil expects its year-over-year sales will drop by at least 3.5%. 

“While there remains significant work ahead of us, we continue to make substantial progress against our three key operational objectives – to advance our wearable technology agenda, leverage our scale to drive costs down and transform our business through our New World Fossil initiative,” Kartsotis said. “These efforts, coupled with our goal to diversify and strengthen our capital structure, all support our objective to create long-term value for our shareholders.”