Fossil Group Inc (FOSL), which deals in watches and wearable devices, got its credit rating cut by the Standard & Poor’s on Friday.

The S&P cut the company’s credit rating from “BBB” to “BB+.” The change in credit rating comes after the company reported earnings per share and revenue for its first quarter that were below estimates.

S&P said that it expects similar results for the rest of the year as Fossil continues to face a tough retail environment. The company ins’t expected to start turning around until late in the year or early 2017, reports TheStreet.com.

Fossil is having trouble competing with other wearable makers, such as Apple Inc. (AAPL), and that was partly to blame for its troubles in its most recent quarter. It previously planned to launch 100 new wearable devices in 2016, but is shying away from that idea now.

FOSL shares were down 1% as of Friday morning.