What: Shares of fashion company Fossil (NASDAQ:FOSL) slumped in November, falling 29.3%, according to S&P Capital IQ data. The company reported lower revenue than analysts were expecting during the third quarter, and its guidance for the full year was slashed.

So what: Fossil reported third-quarter revenue of $771.3 million, down 13.8% year over year and about $23 million below the average analyst estimate. Sales of watches, which account for the majority of the company's revenue, slumped 17% year over year, or 11% adjusting for currency. Sales fell in every region by double-digit percentages, and operating income was cut in half compared with the same period last year.

CEO Kosta Kartsotis was not pleased with the company's results:

While our results for the third quarter were within our expectations, we are not satisfied with our overall performance. Currency aside, our Skagen and Fossil brands performed well in a challenging environment as our initiatives in branding and innovation resonated with consumers around the world. Our branded jewelry and leathers business increased but were more than offset by a decline in our watch business, reflecting general weakness in the category.

Now what: Fossil isn't expecting things to get better anytime soon. The company's guidance for the fourth quarter was well below expectations, and full-year guidance was slashed. Fossil expects sales to decline by 7% to 16% during the fourth quarter, with EPS between $1.05 and $1.65 far short of the average analyst estimate of $2.14.

For the full year, revenue is now expected to decline by 8% to 10.5%, with EPS between $4.15 and $4.75. This range compares with previous guidance calling for a revenue decline between 4% and 8%, and EPS between $4.80 and $5.60.

In an effort to incorporate technology into its products, Fossil also announced the $260 million acquisition of Misfit, a company that makes fitness trackers. With smartwatches and other wearables posing a threat to the traditional watch industry, Fossil is repositioning itself to better compete. Fossil stock has lost about two-thirds of its value so far this year, with a big chunk disappearing in November, and the company will need to prove to investors that it can turn things around.