Global consumer fashion accessories maker, Fossil Group Inc. (FOSL Quick QuoteFOSL - Free Report) is gearing up to enrich its wearables portfolio with the launch of smartwatches. On Sep 1, Fossil teamed up with Qualcomm Technologies, Inc., a subsidiary of Qualcomm Inc. (QCOM Quick QuoteQCOM - Free Report) and announced that the Qualcomm Snapdragon Wear 2100 processor will be powering its latest smartwatches − Fossil Q Marshal and Fossil Q Wander.

With this, Fossil became the first Fossil Group brand to ship smartwatches based on the Snapdragon Wear 2100 processor, which is Qualcomm Technologies' second-generation processor for Android Wear smartwatches.

The combination of the industry-leading Snapdragon Wear 2100 with Fossil Group's smartwatches is part of a broader plan to introduce more than 100 wearables products including activity trackers and smart watches for many brands in 2016. The move will set a new bar in the wearables industry and bring the best of fashion and technology to consumers.

The Q Wander and Q Marshal are the latest additions to the company's Q portfolio of Android Wear, which already includes the Q Founder smartwatch. The new additions will be available this year. Prices of both smartwatches will start from $275 and these will come in two sizes, 44mm and 46mm.

Both watches will also support wireless charging and come in multiple colors. Also, the watches are expected to have updated and the most recent Android Wear software, since both will be running on Android Wear, like Q Founder.

Fossil Q Founder was the first Android Wear smartwatch. It was launched in Nov 2015 along with a pair of connected smart bracelets called Fossil Q Dreamer and Reveler. Q Founder was also priced at $275. It was a success and helped the company to identify additional opportunity.

The launch of these wearables is part of the company's efforts to bring a wider variety of products to the wearables industry amid sluggish industry trends. We note that the companyhas been witnessing sluggish results since the beginning of 2015. Estimates have also been moving south over the past 30- and 60-day periods. Softness in watch sales due to a decline in its multi-brand licensed watch portfolio, weak comps in the U.S., sluggish performance in key international markets and unfavorable currency have been weighing on the stock.

In such a scenario, the continued momentum of the Fossil brand, product innovation in the watch portfolio and expansion in wearable technology are encouraging. In fact, the launch of new wearables in 2016 might mark a turnaround for the company.

Fossil’s entry in the wearable space is surely going to benefit this Zacks Rank #3 (Hold) company given the huge opportunity in the wearables space, backed by rising demand for smartwatches.

Fossil operates in both the fashion and tech industries, and produces a broad variety of connected products that appeal to both fashion and consumer electronics channels. Therefore, there’s a good chance that many designer watch brands will ask the company to make wearable tech under their names as well. Fossil also makes apparel and other wearables including jewelry and handbags that might be updated to smart technology later. Android-based value watches in the emerging markets will also be a boon for the company as about half of its revenues are generated from overseas.

Better-ranked stocks in the same industry include Tilly's, Inc. (TLYS Quick QuoteTLYS - Free Report) and The Children's Place, Inc. (PLCE Quick QuotePLCE - Free Report) . Both stocks sport a Zacks Rank #1 (Strong Buy).

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