Lauren Thomas, CNBC:

Fossil Group’s latest financials show the watchmaker is clearly hurting from Apple’s encroachment into the traditional hardware sector.

Shares of Fossil closed down more than 20 percent Wednesday, following the company’s dismal first-quarter earnings report.

“Our results for the first quarter … continue to reflect a challenging retail environment and a watch category undergoing significant change,” Fossil CEO Kosta Kartsotis said on the earnings conference call.

Results like these fly in the face of naysayers, support the notion that Apple Watch is entrenched and is solidifying its hold on this market.