What happened

Shares of Fossil Group Inc. (NASDAQ:FOSL) plunged 37.6% in the month of May, according to data provided by S&P Global Market Intelligence, after the lifestyle accessories specialist announced disappointing first-quarter 2017 results.

So what

Quarterly revenue declined 11.8% year over year (11% at constant currency) to $581.8 million. That translated to a net loss of $48.2 million, or $1.00 per share, compared to net income of $0.12 per share in the same year-ago period. To be fair, though, those results included a $0.35-per-share restructuring charge, partly offset by non-operating currency hedging gains of $0.11 per share.

Fossil store

IMAGE SOURCE: FOSSIL GROUP. 

Fossil Group CEO Kosta Kartsotis noted the results were "largely in line with our expectations, [and] continue to reflect a challenging retail environment and a watch category undergoing significant change."

Now what

To successfully capitalize on that change, Fossil is simultaneously trying to drive growth in its core watch business while moving forward its wearable technology initiatives. To that end, Fossil is on track to launch more than 300 new wearable tech SKUs in 2017 that offer features including slimmer cases, improved functionality, brighter displays, and easier charging. Meanwhile, Fossil is working to reduce costs and improve operating efficiency going forward -- a move Kartsotis insists will leave it "better positioned to improve profitability in a very leverageable business model going forward."

For now, however, this quarterly report represented a painful start to 2017 for Fossil Group. And with plenty of work to do before Fossil Group realizes the fruits of its turnaround efforts, it's hard to blame investors for taking such a big step back last month.

Steve Symington has no position in any stocks mentioned. The Motley Fool recommends Fossil Group, Inc. The Motley Fool has a disclosure policy.