The announcement comes on the heels of the news that Lagerfeld, the creative force behind Chanel for nearly 30 years, is launching a fashion brand, Karl, with backing from private equity firm Apax. The “rock chic" brand will be sold exclusively for the first month through net-a-porter, then on a dedicated website and through a few selected retailers in the spring.

"We look forward to working with Karl Lagerfeld," says Mark Quick, vice chairman for Fossil. "It is a pleasure to work with such an inspiring fashion visionary."

"It is essential for us to work with the best license partners in each segment–that is why we are happy to partner up with Fossil," says Pier Paolo Righi, president of Karl Lagerfeld.