Fossil, Misfit trying to bring fashion to wearables with partnership

It seems like everyone came back to work from Christmas vacation with a rubber or plastic band on their wrist. Everyone, it seems is buying fitness trackers.

The Fossil Group, a $3.5 billion-a-year company known for making watches and other jewelry, is taking this evolution quite seriously after seeing its stock tank from above $100 to below $30 last year as Apple Watches, Fitbits and Garmin fitness trackers ate into its business.

But Dallas-based Fossil hopes the acquisition of California company Misfit will help it bring its fashion sense to the fitness world.

Misfit founder Sonny Vu said he couldn't find anyone in Silicon Valley who cared about fashion.

"We were so happy to find Fossil," he said, especially when he saw Fossil's list of brands including Tory Burch and Kate Spade.

At CES, Fossil announced its plans to launch 100 new wearables in 2016, including activity trackers and smartwatches made with Misfit.

It hopes to tap into Misfit's relationships with health insurance companies and benefits departments to create a new category of customers for its products.

"We found out our customers want to wear this technology, but they care about style and what it looks like," said Greg McKelvey, Fossil Group's chief strategy and digital officer. "Most of what was out there just doesn't look good with your outfit."

Fossil has a huge design department, but it needed a company that had the technology, he said.