Latest news with #FossilGroup
Yahoo
30-07-2025
- Business
- Yahoo
Fossil Group, Inc. Announces Date for Second Quarter 2025 Earnings Release and Conference Call
RICHARDSON, Texas, July 30, 2025 (GLOBE NEWSWIRE) -- Fossil Group, Inc. (NASDAQ: FOSL) announced today that it will report second quarter 2025 financial results after market close on Wednesday, August 13, 2025, followed by a conference call to discuss the results at 5:00 p.m. ET the same day. The call can be accessed live on the Company's investor relations website at and will also be archived for replay. About Fossil Group, Inc. Fossil Group, Inc. is a global design, marketing, distribution and innovation company specializing in lifestyle accessories. Under a diverse portfolio of owned and licensed brands, our offerings include watches, jewelry, handbags, small leather goods, belts and sunglasses. We are committed to delivering the best in design and innovation across our owned brands, Fossil, Michele, Relic, Skagen and Zodiac, and licensed brands, Armani Exchange, Diesel, Emporio Armani, kate spade new york, Michael Kors, Skechers and Tory Burch. We bring each brand story to life through an extensive distribution network across numerous geographies, categories, and channels. Certain press release and SEC filing information concerning the Company is also available at Investor Relations Contact: Christine Greany The Blueshirt Group (858) 722-7815 christine@
Yahoo
20-05-2025
- Business
- Yahoo
Fossil's Q1 Loss Narrows Y/Y as Watch Sales Drive Turnaround Plan
Shares of Fossil Group, Inc. FOSL have rallied 27.9% since the company reported its first-quarter earnings for fiscal 2025, significantly outperforming the S&P 500's modest 1.4% gain during the same period. Over the past month, the stock has surged an impressive 81.3%, well ahead of the S&P 500's 15.4% increase, reflecting renewed investor optimism in the company's ongoing turnaround strategy and improving fundamentals. Fossil incurred first-quarter net loss per share of 33 cents, which narrowed from 46 cents in the prior-year quarter. Adjusted net loss per share of 10 cents narrowed from 30 cents a year earlier. (See the Zacks Earnings Calendar to stay ahead of market-making news.) The company reported net sales of $233.3 million, down 8.5% from $254.9 million in the prior-year period. In constant currency terms, the decline was 6.2%. The top-line weakness was primarily driven by category softness, especially in smartwatches and leather goods, and the impact of store closures. Despite the sales decline, gross profit rose to $143 million from $133.5 million a year earlier, as gross margin expanded to 61.3%, up 890 basis points, supported by favorable product mix, exiting the smartwatch category, and lower freight costs. Operating loss narrowed significantly to $6.7 million from $29.2 million in the year-ago quarter. On an adjusted constant currency basis, Fossil reported operating income of $10.3 million versus an adjusted operating loss of $18.9 million in the first quarter of 2024. Fossil Group, Inc. price-consensus-eps-surprise-chart | Fossil Group, Inc. Quote Fossil's performance varied across regions and product categories. Sales in the Americas and Asia declined 9% and 10%, respectively, on a constant currency basis, while Europe posted a modest 1% increase. By category, traditional watches grew 2%, offsetting some of the impact from a 37% decline in leather goods and a 13% drop in jewelry. Notably, the MICHAEL KORS brand posted a 12% sales increase, standing out amid broader portfolio declines. Wholesale sales rose 6% on a constant currency basis, benefiting from channel rebalancing and promotional pullbacks, while direct-to-consumer (DTC) sales dropped 24%, impacted by a 22% decrease in comparable retail sales. The company ended the quarter with 220 stores, down from 277, after closing 62 locations and opening 5. CEO Franco Fogliato emphasized that the quarter marked another step forward in Fossil's turnaround plan, highlighting strong progress in operational and financial metrics. He noted that restructuring initiatives and strategic decisions to reduce promotional activity contributed to the gross margin improvement. CFO Randy Greben added that operating expenses declined by 8% year-over-year, reflecting cost discipline and digital marketing spend reductions. Management also pointed to successful product innovation, particularly in its core Fossil line and in collaborative launches like the Fossil for Mine Craft collection and a limited-edition Fossil Shelby watch. These initiatives were credited with generating social media traction and consumer engagement. Additionally, wholesale momentum was bolstered by improved storytelling and branding in the men's segment and a focus on top-performing SKUs. The significant year-over-year margin expansion stemmed from several strategic moves: exiting the underperforming smartwatch segment, shifting focus to full-price sales, improving cost structures, and optimizing product assortments. The e-commerce channel also saw margin gains despite softer volumes, while retail trends showed early signs of recovery in units per transaction and conversion rates at high-traffic locations. On the cost side, SG&A dropped to $133.8 million from $152.2 million, aided by lower compensation costs, fewer stores, and a planned decrease in digital advertising. Inventory declined 19% year over year to $182.1 million, aligning with efforts to streamline assortments and reduce markdown risk. Fossil reiterated its full-year 2025 guidance, projecting a worldwide net sales decline in the mid-to-high teens and an adjusted operating margin in the negative low single digits. The outlook factors in a $45 million revenue hit from planned retail store closures and excludes foreign currency impacts. Management also cited confidence in its ability to offset potential tariff risks through diversification and mitigation strategies. During the quarter, Fossil signed an agreement to sell its distribution center in Eckstedt, Germany, in a sale-leaseback transaction expected to close in the second quarter. The deal is projected to add $20 million in balance sheet cash upon completion, supporting the company's refinancing efforts and strengthening liquidity, which stood at $99.5 million at quarter-end. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Fossil Group, Inc. (FOSL) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
15-05-2025
- Business
- Yahoo
Q1 2025 Fossil Group Inc Earnings Call
Christine Greany; Investor Relations; The Blueshirt Group Franco Fogliato; Chief Executive Officer, Director; Fossil Group Inc Randy Greben; Chief Financial Officer; Fossil Group Inc Operator Good afternoon, ladies and gentlemen, and welcome to the Fossil Group first-quarter 2025 earnings call. (Operator Instructions) This conference call is being recorded and may not be reproduced in whole or in part without written permission from the I'll turn the call over to Christine Greany of The Blueshirt Group to begin. Christine Greany Hello, everyone, and thank you for joining us. With me on the call today is Franco Fogliato, Chief Executive Officer; and Randy Greben, Chief Financial we begin, I would like to remind you that information made available during this conference call contains forward-looking information and actual results could differ materially from those that will be discussed during this call. Fossil Group's policy on forward-looking statements and additional information concerning a number of factors that could cause actual results to differ materially from such statements is readily available in the company's Form 8-K, 10-Q, and 10-K reports filed with the SEC. In addition, Fossil assumes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by today's call, we will refer to constant currency results as well as certain non-GAAP financial measures. Please note that you can find a reconciliation of actual results to constant currency results and other information regarding non-GAAP financial measures discussed on this call in Fossil's earnings release, which was filed today on Form 8-K and is available in the Investors section of that, I'll now turn the call over to Franco. Franco Fogliato Thank you, Christine. Good afternoon, everyone, and thank you for joining us today. I would like to start by welcoming Randy, who joined us in March and has been a tremendous asset in his first two months with Fossil Group. As we have heard me saying on recent earnings calls, we're moving fast and furious over here. Randy has jumped the has ranked quickly, developing sharp proficiency across the operating and financial models in just a matter of weeks. And his high energy and strong desire to win are an ideal fit with our customer. After my remarks, I will turn the call to Randy to provide a detailed review of the financial results and discuss our recognize the global trade environment is top of mind for everyone. Our world-class teams have been doing excellent work in scenario planning, balancing near-term cost management with long-term supply chain optimization. Both Randy and I will address this during our remarks I will discuss our Q1 performance and provide an update on our turnaround initiatives, which are generating strong business momentum. We're pleased to report another quarter of exceptional progress under our turnaround plan. Our teams delivered results ahead of our expectations, both operationally and recorded a significant improvement in sales performance on a sequential basis, drove another quarter of meaningful gross margin expansion and generated a second consecutive quarter of profitability. Specifically, we narrow our core sales declined to just 8%, that represents a sequential improvement of 400 basis points compared to the fourth quarter. Gross margin exceeded 61%, up nearly 9 points from the prior year and we delivered positive adjusted operating margins of 4.3%.Despite the dynamic macro backdrop, we're not currently seeing any softening in our demand trend and continue to have confidence in our ability to drive growth to our turnaround plan. Our confidence is underpinned by several factors. First and foremost is the immediate traction and positive results we're seeing from our turnaround efforts over the past two we have a number of tailwinds to propel the business forward: a leading market position; favorable industry dynamics; and a core underlying strength, including iconic brands, innovative design, talented teams in a broad global reach. We're incredibly proud of our teams for delivering strong execution under our turnaround a reminder, the plan is centered on three primary pillars: refocusing on our core, rightsizing our cost structure and strengthening our balance sheet. I'll take you through a progress update for each of these items. Starting with our first pillar, focusing on our core. Our teams are fully aligned on our new brand-led and consumer-focused operating model, which is translating to positive results across the business. Our primary focus under this pillar is twofold, traditional watches on our major brand platforms and go-to-market advancing quickly on several fronts. First, we are delivering a robust pipeline of product innovation with core Fossil icons, such as our award-winning Raquel line for women in our classic machine series for men. Raquel continues to be among our top seller, capturing attention from influencer talent and style editors the men's side, our Machine Chronograph has been a standard among celebrity stylists, generating social media buzz and press coverage worldwide. In 2025, we're elevating storytelling around major product and brand moments to strengthen engagement and prioritize winning in men while continuing to maximize momentum we've seen in our women's remains core to the Fossil brand as we continue to build a foundation of store tale that connects our rich heritage with today's culture. Among our most highly profiled collaboration this year is the Fossil for Mine Craft collection. Just two weeks ago after the launch, the watches were sold out on Organic social performance was also exceptional with a total reach of $5.5 recently, we had the preview event for our upcoming Fossil Shelby collection. This is our most elevated performance-driven chronograph today, which was built to capture the trailing legacy of Shelby American racing. Additionally, this week, we introduced a limited addition on Superman collection, featuring a full range of products from watches and wallet to bracelet and cufflinks, time to coincide with the Father's supporting our robust pipeline of innovation and branded utilization efforts with full-funnel marketing initiatives. In 2025, we would be investing more strategically, deploying our spend towards a higher mix of brand marketing versus performance Q2, we will be doubling down on media, influencer, and PR to drive brand heat, build awareness, and full demand. This included the upcoming introduction of our global Fossil brand campaign featuring Nick Jonas. As our global brand ambassador, Nick has been a fantastic partner to us as we collaborate in preparation for the March, Fossil was a lead sponsor of JONASCON, a Jonas Brothers' fun convention created in celebration of the group's 20th anniversary. Nick wore our Machine Chronograph throughout the event, providing Fossil with exposure to this most engaged audience while also generating significant press coverage and social engagement. He has a tremendous reach as a musician, actor, and philanthropist who is known worldwide. And we believe Nick will help us build increase awareness of the Fossil brand and drive resonance among both new and existing the same time, we will be investing in point-of-sales marketing, rolling out a new picture and improved store reselling collateral that beacons to the Fossil brand at now to our core license brand: Armani, Kors, and Diesel. We're investing in point-of-sale and in-store presentation in the wholesale channel to reinvigorate our positioning among this brand. These initiatives are already generating improved performance. The Kors brand returned to growth, posting double-digit gains in the first quarter. Armani Exchange was also up in the double digits, while the Armani brand remains pressured by the difficult market environment in are particularly pleased with our ability to achieve minimum royalty reduction with our key partners, which speaks to the strength of our long-term relationship and demonstrate their confidence in our turnaround plan and current trajectory. Importantly, these agreements position us to drive profitable growth among our portfolio of licensed brands going key initiative is the work we are doing to optimize our global wholesale footprint by prioritizing key geography. Most notably, in the US, our Q1 wholesale business for our core brand grew in the double digits on a year-over-year basis. We also saw continued momentum in other highly scalable markets such as India, where traditional watch performance across brands remain transitioning five of our smaller international markets to a distributor model earlier this year, we're continuing to evaluate additional opportunities where we can drive efficient growth and scale through the distributor model. This go-to-market strategy can be very powerful in smaller markets. It simplifies our operating model, allows us to leverage the regional expertise of local partners to a full top-line growth and lowers our in-region cost to drive increased to our initiatives around channel profitability. Our actions are generating meaningful results across both wholesale and DTC. This is clearly reflected in the strength of our gross margin and improved the bottom-line result. The wholesale channel continued to perform ahead of our expectations, led by fewer promotion as well as Fossil brand the e-commerce channel, operating results continue to strengthen. After delivering better-than-expected results in Q4, we saw ongoing momentum in Q1, which has not slowed down thus far in Q2. The strategic decision to reduce our promotional activity is paying clear dividend, higher gross margin, higher quality traffic to our website, and increased average unit at our retail stores, we're seeing a strengthening trend in our full-price location led by improved performance in our traditional watches. During the quarter, we continued to optimize the store portfolio throughout the closure of 28 additional stores. As we continue to make great progress across the strategic areas of the business, we're also taking action to transform our operating model by rightsizing Fossil Group's cost structure. In fact, we have already taken the steps necessary to align our cost structure to our newly defined strategies, scope and scale. This includes a reduction in force in February, moving some of our international markets to a more profitable distributor model, and closing unproductive retail actions are expected to drive $100 million of SG&A savings in 2025 versus 2024. We're also continuing to evaluate other opportunities, including the potential sale of non-core at the third key pillar under our turnaround plan strengthening the balance sheet. We ended the quarter with $100 million of liquidity, and we are actively pursuing initiatives to improve working capital and manage a few days ago, we signed an agreement for the sale leaseback of our European distribution center in a transaction that's expected to close later in Q2. At the same time, we're working with our adviser to address our upcoming debt maturities. Importantly, our better-than-expected financial performance in Q1 provides us with the added flexibility to execute our plans and navigate the dynamic macroenvironment.I'm tremendously grateful to our teams across the organization for their dedication to Fossil Group. They're putting their work and we're seeing that in the early stage of our team. This is inspiring and highly motivating. Including Randy, we have three new executives who joined the company during the first quarter. All of them have hit the ground Martin, our Chief Commercial Officer, has overseen all of our global revenue generating activities. Joe is already implementing a robust commercial strategy designed to drive growth within our global wholesale business. During Q1, Joe and I spent time meeting with our partners around the globe, and we're working in close collaboration on future planning reinforcing the opportunity in front of key leader new to the team is Antonio Carriero, our Chief Vision Information Officer and General Manager of EMEA. Antonio is leading our global technology strategy and driving our commercial business in the EMEA region. He is focused on optimizing our existing tech stack while accelerating our use of AI across the organization to drive efficiencies and unlock potential growth of while I've already talked about the value Randy has brought to the table, I will add that he has been instrumental in our tariff war room as we assess, plan, and model the business amidst a fluid we announced today, we also added two new Board members to complement the strength of our executive team and bring additional supprot leadership to Fossil Group. While the year started differently than we expected, we are seeing continued business momentum, and we are addressing the global tariff environment from a position of and foremost, we're fortunate to have a team with extensive experience, navigating complexity across global markets. Equally important, our diverse global footprint limits our tariff exposure and we have multiple levers we can pull to protect our strong gross margin profile. We have long-term relationship with our vendor partners. We have the ability to lean into a highly scalable market outside the US, where our brand already has a strong presence and we have pricing the evolving policy changes and market moves make it challenging to predict consumer sentiment for the remainder of the year, we have not seen any slowdown in our business trends year to date. We are reiterating our full-year guidance, which contemplates a range of outcomes for China tariff. We also remain confident in the three-year financial framework we have outlined during our March earnings outlook assumes there is no material change in macroeconomic conditions and broader consumer demand trend. (inaudible) we have been operating in tumultuous environment, our turnaround plan is working, and our results are moving in the right direction. We look forward to continuing on our path to restoring growth, delivering long-term profitability and creating durable shareholder I will turn the call over to Randy to review the first-quarter financial and discuss our outlook. Randy Greben Thank you, Franco, and good afternoon, everyone. It's great to be here and be a part of this incredible team. I'm excited about the opportunity we have in front of us and look forward to getting to know how our started the year with strong first-quarter performance that exceeded our expectations across the P&L. First-quarter net sales totaled $239 million, down to 6% in constant currency. Core sales declined 8% on a year-over-year basis, excluding the benefit of 700 basis points from the additional week in this year's retail calendar, partially offset by 500 basis points of impact from our smartwatch exit and retail store closures. This represents notable sequential improvement from a core sales decline of 12% in in our Fossil traditional watch business also improved sequentially, posting growth of 7% globally versus the prior year, excluding the 53rd week and store closures. That's up from low single-digit growth in Q4 of gross margin expanded 880 basis points compared to last year coming in at 61.1%. The year-over-year increase primarily reflects higher product margins in our core categories, driven by improved product costing, reduced promotional activity in our e-commerce business, and our exit from connected watches. Looking at the balance of the year, we expect gross margins to remain strong as we continue to reduce our promotional levels and focus on a full-price selling at expenses, we brought down SG&A by $17 million to $136 million. This represents a decrease of 11% versus prior year, which can be traced to lower store operating costs on fewer stores, lower compensation and administrative expenses, and a planned decrease in digital marketing spend versus the prior year. Our teams have done a great job of prioritizing cost control, and we will continue to identify additional expense levers in Q1, we closed 28 stores, ending the quarter with 220 stores. All of these closures occurred at natural lease expiration with very minimal closing at the bottom line, our focus on gross margin expansion and cost reduction enabled us to deliver a second consecutive quarter of profitability. First-quarter adjusted operating income swung from a loss of $20 million last year to a $10 million profit this year. This strength drove Q1 adjusted operating margin of 4.3%.Moving to the balance sheet. We ended the quarter with total liquidity of $100 million, including $78 million in cash and cash equivalents and $21 million of availability under our revolving credit facility. Inventory levels totaled $182 million. That's down 19% compared to a year ago and in line with our expectations. Our teams are continuing to operate with financial rigor, exercising working capital discipline and careful inventory management as we work towards strengthening the balance sheet, a critical pillar under our turnaround company has been acting with urgency to address its liquidity position and I can share that we're making meaningful progress towards refinancing our debt, selling non-core assets and further reducing costs. I'm particularly pleased to report that in the last week, we signed an agreement for the sale leaseback of our distribution center in EXSTAT Germany. The transaction is expected to close in Q2 and will bring in excess of $20 million to the balance sheet upon completion. The refinancing process has been a particular focus of mind during my first 60 days and we look forward to sharing more with our investors in the coming now to guidance. Based on the results we're seeing from our turnaround initiatives and ongoing momentum across the business, we are reiterating our full-year outlook for 2025. With respect to the global tariff situation, our business has a number of factors that work in our favor, and I've been impressed at the speed at which my colleagues around the globe have mobilized to address this head company is leading from the front with respect to addressing tariff mitigation and absorption. Even if tariff rates ultimately fell between 30% to 145% on goods from China and 10% on products from other countries, we're confident that we can mitigate the full impact of tariffs to our 2025 me unpack just why. First and foremost, we are a global company with more than 60% of our revenue generated outside of the United States. This provides us with a level of insulation that we will leverage as we continue to lean into countries where we have a strong presence and growing business momentum, placing less reliance on our tariff-impacted domestic addition to having a large and diverse revenue stream, we have long established vendor partner relationships, in many cases, formed over decades, both in China and around the globe. We are leaning into those relationships and have already seen partners willing to participate in sharing some of the cost impact of the incremental tariffs. We also have a supply chain that has built-in redundancy, providing us with the agility to reallocate manufacturing quickly and seamlessly as reducing costs and leveraging our global revenue stream are key advantages, they are not our only levers. We have also made the strategic decision to increase prices later in Q2 and into Q3. Our approach is highly surgical and will vary by brand and by category, providing us with another means to protect the gross margin progress we've demonstrated over the last two final mitigant is to further geodiversify our production. We are evaluating opportunities to lessen, and in some categories, completely removed the portion of our production that occur in China. In fact, we've already begun to mobilize on this front in certain key areas of the the fluid trade situation, there are two key points I will make regarding our guidance. First, our full-year outlook assumes no material softening of the macroeconomic environment or broader consumer demand. And second, the favorable dynamics Franco and I discussed make us confident that we can offset potential tariff impact even if China rates settle as high as 145%. If the current rate of 30% holds through the year-end, we believe the guidance we're providing today could prove full-year 2025, we expect worldwide net sales to decline in the mid- to high-teens, which includes approximately $45 million of impact related to retail store closures and excludes impacts from foreign exchange and potential asset the strong business momentum we're seeing, we expect to continue to narrow our year-over-year sales declines for the remaining quarters in 2025. As Franco mentioned, we are taking actions this year that are expected to generate approximately $100 million of SG&A savings in 2025 versus factors are driving the savings. First, we implemented a corporate reduction in force in February. Next, we expect to continue to rationalize the store portfolio with plans to close approximately 50 stores in 2025. And third, we transitioned five international markets to a distributor model, which brings our operating costs in those markets to near zero. We are continuing to evaluate opportunities in additional expect the combination of expanding gross margins and aggressive cost actions to drive full-year adjusted operating margin in the negative low single digits. As we position the business to achieve long-term profitable growth, we're acting with discipline, maintaining financial rigor, and moving as quickly as possible on all appreciate your time this afternoon and we'll be available for follow-up calls. Now I'll turn the call back to Franco for closing comments. Franco Fogliato Thank you, Randy. I want to thank you, our teams, for their tireless efforts and dedication to our turnaround plan. And I want to thank you, our shareholders, for their ongoing support. We remain committed to restoring profitable growth and building long-term shareholder value. Look forward to updating everyone on our continuous progress next quarter. Operator This concludes the meeting. You may now disconnect.
Yahoo
14-05-2025
- Business
- Yahoo
Fossil Group, Inc. Reports First Quarter 2025 Financial Results
RICHARDSON, Texas, May 14, 2025 (GLOBE NEWSWIRE) -- Fossil Group, Inc. (NASDAQ: FOSL) today announced financial results for the first quarter ended April 5, 2025. 'We are pleased to deliver another quarter of progress under our turnaround plan,' said Franco Fogliato, CEO. 'We narrowed our sales declines, increased gross margin by 890 basis points and delivered a second consecutive quarter of positive adjusted operating profit. Our turnaround strategies are gaining traction and fueling momentum across our business despite the challenging macro environment. Notably, our diverse global footprint limits our tariff exposure and we have a number of levers and mitigation strategies that are expected to help offset impacts and protect our healthy gross margin profile in 2025. Additionally, based on our strong first quarter performance and conviction in our turnaround plan, we believe we are on the right path to driving long-term profitable growth.' First Quarter 2025 Operating Results Amounts referred to as 'adjusted' as well as 'constant currency' are non-GAAP financial measures. Reconciliations of these non-GAAP financial measures to their closest reported GAAP measures are included at the end of this press release. Net sales totaled $233.3 million, a decrease of 8.5% on a reported basis and 6.2% in constant currency compared to $254.9 million in the first quarter of fiscal 2024. The sales decrease was largely driven by overall category, consumer and channel softness. Declines in smartwatch sales and our store rationalization initiatives comprised approximately 520 basis points of the sales decline in the first quarter. Sales were favorably impacted 700 basis points as a result of the fiscal 2025 first quarter including 14 weeks as compared to 13 weeks in the prior year quarter. Net sales, in constant currency, declined 9% in the Americas, and 10% in Asia, while increasing 1% in Europe. Wholesale sales increased 6.0% while our direct to consumer sales decreased 24%, each on a constant currency basis. Within our direct to consumer channels, comparable retail sales declined 22%. In our major product categories, traditional watch sales increased 2% in constant currency in the first quarter compared to the prior year period. The leathers category decreased 37% and jewelry sales declined 13% in constant currency during the first quarter. While the majority of the brands in our portfolio decreased in the first quarter, MICHAEL KORS increased 12% in constant currency. FOSSIL decreased 8% in constant currency driven by leathers and jewelry, partially offset by a 3% increase in watches. Gross profit totaled $143.0 million compared to $133.5 million in the first quarter of 2024. Gross margin increased 890 basis points to 61.3% versus 52.4% a year ago. The year-over-year increase primarily reflects improved product margins in our core categories, exiting the smartwatch category, favorable product mix and reduced freight costs. Operating expenses totaled $149.7 million, down 8.0% compared to the prior year period. As a percentage of net sales, operating expenses were 64.2% in the first quarter of 2025 compared to 63.8% in the prior year first quarter. Operating expenses in the first quarter of 2025 included $15.8 million of restructuring costs, primarily related to employee costs and professional services, while operating expenses in the first quarter of 2024 included $10.1 million of restructuring costs. SG&A expenses were $133.8 million, down 12.1% compared to the first quarter of 2024. As a percentage of net sales, SG&A expenses were 57.4% in the first quarter of 2025 compared to 59.7% in the prior year first quarter, largely driven by cost reductions and efficiencies gained through our restructuring programs. Operating loss was $6.7 million compared to $29.2 million in the first quarter of 2024. Operating margin of (2.9)% in the first quarter of 2025 compared to (11.5)% in the prior year first quarter. Constant currency adjusted operating income totaled $10.3 million compared to adjusted operating loss of $18.9 million in the first quarter of 2024. Constant currency adjusted operating margin was 4.3% in the first quarter of 2025 compared to adjusted operating margin of (7.5)% in the prior year first quarter. Interest expense decreased to $4.5 million compared to $5.1 million in the first quarter of 2024. Other income (expense) was expense of $3.3 million compared to income of $3.9 million in the first quarter of 2024, reflecting net currency losses in the first quarter of 2025 as compared to net currency gains in the prior year first quarter. Income (loss) before income taxes was $(14.5) million compared to $(30.4) million in the first quarter of 2024. Adjusted EBITDA was $9.1 million, or 3.9% of net sales in the first quarter of 2025 and $(10.7) million, or (4.2)% in the prior year period. Provision (benefit) for income taxes was an expense of $3.4 million, resulting in an effective income tax rate of (23.3)% compared to a benefit of $6.1 million and an effective tax rate of 20.1% in the prior year. The effective tax rate in the first quarter of 2025 differed from the prior year first quarter primarily due to a change in the Company's global mix of earnings. Net loss totaled $17.6 million with net loss per diluted share of $0.33, which compares to a net loss of $24.3 million and net loss per diluted share of $0.46 in the prior year period. Adjusted net loss for the first quarter was $5.0 million with adjusted net loss per diluted share of $0.10 compared to adjusted net loss of $16.2 million with adjusted net loss per diluted share of $0.30 in the prior year period. During the first quarter of 2025, currencies unfavorably affected net loss per diluted share by approximately $0.13. Balance Sheet Summary As of April 5, 2025, the Company had total liquidity of $99.5 million, including $78.3 million of cash and cash equivalents and $21.2 million of availability under its revolving credit facility. Inventories at the end of the first quarter of 2025 totaled $182.1 million, a decrease of 19% versus a year ago. Total debt was $180 million. Outlook The Company is reiterating the following financial guidance for full year 2025, which assumes no material change in the macroeconomic environment or broader consumer demand. Worldwide net sales guidance includes an expected impact of approximately $45 million related to retail store closures and excludes potential asset sales. Worldwide net sales and adjusted operating income margin guidance exclude impacts from foreign currency. Worldwide net sales decline in the range of mid to high teens. Adjusted operating income(1) margin in the negative low single digits. (1) A reconciliation of constant currency adjusted operating income, a non-GAAP financial measure, to a corresponding GAAP measure is not available on a forward-looking basis without unreasonable efforts due to the high variability and low visibility of certain income and expense items that are excluded in calculating adjusted operating income. Safe Harbor Certain statements contained herein that are not historical facts, constitute 'forward-looking statements' within the meaning of the Private Securities Litigation Reform Act of 1995 and involve a number of risks and uncertainties. The actual results of the future events described in such forward-looking statements could differ materially from those stated in such forward-looking statements. Among the factors that could cause actual results to differ materially are: risks related to the success of our Turnaround Plan; risks related to strengthening our balance sheet and liquidity; risks related to non-core asset sales; increased political uncertainty; the effect of worldwide economic conditions, including recessionary risks; the effect of a pandemic; significant changes in consumer spending patterns or preferences; interruptions or delays in the supply of key components or products; acts of war or acts of terrorism; loss of key facilities; data breach or information systems disruptions; changes in foreign currency valuations in relation to the U.S. dollar; lower levels of consumer spending resulting from a general economic downturn or generally reduced shopping activity caused by public safety or consumer confidence concerns; the performance of our products within the prevailing retail environment; customer acceptance of both new designs and newly-introduced product lines; changes in the mix of product sales; the effects of vigorous competition in the markets in which we operate; compliance with debt covenants and other contractual provisions and meeting debt service obligations; risks related to the success of our business strategy; the termination or non-renewal of material licenses; risks related to foreign operations and manufacturing; changes in the costs of materials and labor; government regulation and tariffs; our ability to secure and protect trademarks and other intellectual property rights; levels of traffic to and management of our retail stores; loss of key personnel or failure to attract and retain key employees and the outcome of current and possible future litigation, as well as the risks and uncertainties set forth in the Company's most recent Annual Report on Form 10-K filed with the Securities and Exchange Commission (the 'SEC'). These forward-looking statements are based on our current expectations and beliefs concerning future developments and their potential effect on us. While management believes that these forward-looking statements are reasonable as and when made, there can be no assurance that future developments affecting us will be those that we anticipate. Readers of this release should consider these factors in evaluating, and are cautioned not to place undue reliance on, the forward-looking statements contained herein. The Company assumes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise, except as required by law. About Fossil Group, Inc. Fossil Group, Inc. is a global design, marketing, distribution and innovation company specializing in lifestyle accessories. Under a diverse portfolio of owned and licensed brands, our offerings include watches, jewelry, handbags, small leather goods, belts and sunglasses. We are committed to delivering the best in design and innovation across our owned brands, Fossil, Michele, Relic, Skagen and Zodiac, and licensed brands, Armani Exchange, Diesel, Emporio Armani, kate spade new york, Michael Kors and Tory Burch. We bring each brand story to life through an extensive distribution network across numerous geographies, categories and channels. Certain press release and SEC filing information concerning the Company is also available at Investor Relations: Christine Greany The Blueshirt Group christine@ Consolidated Income Statement Data For the 14Weeks Ended For the 13Weeks Ended ($ in millions, except per share data): April 5, 2025 March 30, 2024 Net sales $ 233.3 $ 254.9 Cost of sales 90.3 121.4 Gross profit 143.0 133.5 Gross margin (% of net sales) 61.3 % 52.4 % Operating expenses: Selling, general and administrative expenses 133.8 152.2 Other long-lived asset impairments 0.1 0.4 Restructuring charges 15.8 10.1 Total operating expenses $ 149.7 $ 162.7 Total operating expenses (% of net sales) 64.2 % 63.8 % Operating income (loss) (6.7 ) (29.2 ) Operating margin (% of net sales) (2.9 )% (11.5 )% Interest expense 4.5 5.1 Other income (expense) - net (3.3 ) 3.9 Income (loss) before income taxes (14.5 ) (30.4 ) Provision for income taxes 3.4 (6.1 ) Less: Net income attributable to noncontrolling interest (0.3 ) — Net income (loss) attributable to Fossil Group, Inc. $ (17.6 ) $ (24.3 ) Earnings per share: Basic $ (0.33 ) $ (0.46 ) Diluted $ (0.33 ) $ (0.46 ) Weighted average common shares outstanding: Basic 53.3 52.5 Diluted 53.3 52.5 Consolidated Balance Sheet Data ($ in millions): April 5, 2025 March 30, 2024 Assets: Cash and cash equivalents $ 78.3 $ 112.9 Accounts receivable - net 124.6 134.4 Inventories 182.1 224.1 Other current assets 97.5 165.9 Total current assets 482.5 637.3 Property, plant and equipment - net 40.2 54.4 Operating lease right-of-use assets 117.3 142.3 Intangible and other assets - net 46.0 57.0 Total long-term assets 203.5 253.7 Total assets $ 686.0 $ 891.0 Liabilities and stockholders' equity: Accounts payable, accrued expenses and other current liabilities $ 250.3 $ 294.9 Short-term debt 12.3 0.5 Total current liabilities 262.6 295.4 Long-term debt 167.2 202.9 Long-term operating lease liabilities 109.8 129.1 Other long-term liabilities 22.0 37.0 Total long-term liabilities 299.0 369.0 Stockholders' equity 124.4 226.6 Total liabilities and stockholders' equity $ 686.0 $ 891.0 Constant Currency Financial Information The following tables present the Company's business segment and product net sales and selling, general and administrative expenses on a constant currency basis which are non-GAAP financial measures. To calculate these items on a constant currency basis, net sales and selling, general and administrative expenses for the current fiscal year period for entities reporting in currencies other than the U.S. dollar are translated into U.S. dollars at the average rates during the comparable period of the prior fiscal year. The Company presents constant currency information to provide investors with a basis to evaluate how its underlying business performed excluding the effects of foreign currency exchange rate fluctuations. The constant currency financial information presented herein should not be considered a substitute for, or superior to, the measures of financial performance prepared in accordance with GAAP. Net Sales For the 14 weeks ended April 5, 2025 For the 13 weeks ended March 30, 2024 ($ in millions) As Reported Impact of Foreign Currency Exchange Rates Constant Currency As Reported Segment: Americas $ 97.7 $ 2.6 $ 100.3 $ 110.0 Europe 77.3 1.8 79.1 78.7 Asia 57.4 1.4 58.8 65.6 Corporate 0.9 — 0.9 0.6 Total net sales $ 233.3 $ 5.8 $ 239.1 $ 254.9 Product Categories: Watches: Traditional watches $ 184.6 $ 4.9 $ 189.5 $ 186.5 Smartwatches 4.0 0.1 4.1 8.9 Total watches $ 188.6 $ 5.0 $ 193.6 $ 195.4 Leathers 17.2 0.2 17.4 27.6 Jewelry 22.3 0.5 22.8 26.3 Other 5.2 0.1 5.3 5.6 Total net sales $ 233.3 $ 5.8 $ 239.1 $ 254.9 For the 14 weeks ended April 5, 2025 For the 13weeks endedMarch 30, 2024 ($ in millions) As Reported Impact ofForeignCurrencyExchange Rates ConstantCurrency As Reported Selling, general and administrative expenses $ 133.8 $ 1.9 $ 135.7 $ 152.2 Adjusted EBITDA, Adjusted operating income (loss), Constant currency adjusted operating income (loss), Adjusted net income (loss) and Adjusted earnings (loss) per share Adjusted EBITDA, Adjusted operating income (loss), Constant currency adjusted operating income (loss), Adjusted net income (loss) and Adjusted earnings (loss) per share are non-GAAP financial measures. We define Adjusted EBITDA as our net income (loss) before the impact of income tax expense (benefit), plus interest expense, amortization and depreciation, impairment expense, other non-cash charges, stock-based compensation expense, restructuring expense and unamortized debt issuance costs included in loss on extinguishment of debt minus interest income. We define Adjusted operating income (loss) as operating income (loss) before impairment expense and restructuring expense. We define Constant currency adjusted operating income (loss) as operating income (loss) before impairment expense and restructuring expense and excluding the effects of foreign currency exchange rate fluctuations. We define Adjusted net income (loss) and Adjusted earnings (loss) per share as net income (loss) attributable to Fossil Group, Inc. and diluted earnings (loss) per share, respectively, before impairment expense, restructuring expense and unamortized debt issuance costs included in loss on extinguishment of debt. We have included Adjusted EBITDA, Adjusted operating income (loss), Constant currency adjusted operating income (loss), Adjusted net income (loss) and Adjusted earnings (loss) per share herein because they are widely used by investors for valuation and for comparing our financial performance with the performance of our competitors. We also use both non-GAAP financial measures to monitor and compare the financial performance of our operations. Our presentation of Adjusted EBITDA, Adjusted operating income (loss), Constant currency adjusted operating income (loss), Adjusted net income (loss) and Adjusted earnings (loss) per share may not be comparable to similarly titled measures other companies report. Adjusted EBITDA, Adjusted operating income (loss), Constant currency adjusted operating income (loss), Adjusted net income (loss) and Adjusted earnings (loss) per share are not intended to be used as alternatives to any measure of our performance in accordance with GAAP. The following tables reconcile Adjusted EBITDA to the most directly comparable GAAP financial measure, which is income (loss) before income taxes. Certain line items presented in the tables below, when aggregated, may not foot due to rounding. Fiscal 2024 Fiscal 2025 ($ in millions): Q2 Q3 Q4 Q1 Total Income (loss) before income taxes $ (36.6 ) $ (25.8 ) $ (25.2 ) $ (14.5 ) $ (102.1 ) Plus: Interest expense 4.1 4.9 4.9 4.5 18.4 Amortization and depreciation 3.9 3.8 3.8 3.4 15.0 Impairment expense 0.6 1.0 0.6 0.1 2.3 Other non-cash charges 0.1 (0.5 ) 3.7 0.2 3.4 Stock-based compensation 0.6 0.6 0.7 0.6 2.5 Restructuring expense 16.7 4.8 28.2 15.8 65.5 Restructuring cost of sales — — 7.5 — 7.5 Less: Interest Income 1.1 1.1 1.1 1.0 4.3 Adjusted EBITDA $ (11.7 ) $ (12.3 ) $ 23.1 $ 9.1 $ 8.2 Fiscal 2023 Fiscal 2024 ($ in millions): Q2 Q3 Q4 Q1 Total Income (loss) before income taxes $ (33.5 ) $ (55.2 ) $ (27.8 ) $ (30.4 ) $ (146.9 ) Plus: Interest expense 5.3 5.8 5.7 5.1 21.9 Amortization and depreciation 4.8 4.5 4.6 4.5 18.5 Impairment expense 0.2 0.6 1.3 0.4 2.5 Other non-cash charges (0.5 ) (0.2 ) 0.1 (0.1 ) (0.8 ) Stock-based compensation 1.6 1.5 1.1 1.0 5.2 Restructuring expense 4.6 16.0 15.5 10.1 46.2 Restructuring cost of sales 2.9 (1.3 ) (1.3 ) (0.2 ) 0.1 Less: Interest Income 0.8 1.0 0.9 1.1 3.8 Adjusted EBITDA $ (15.4 ) $ (29.3 ) $ (1.6 ) $ (10.7 ) $ (57.1 ) The following tables reconcile both Adjusted operating income (loss) and Constant currency adjusted operating income (loss), Adjusted net income (loss) and Adjusted earnings (loss) per share to the most directly comparable GAAP financial measures, which are operating income (loss), net income (loss) attributable to Fossil Group, Inc. and diluted earnings (loss) per share, respectively. Certain line items presented in the table below, when aggregated, may not foot due to rounding. For the 14 Weeks Ended April 5, 2025 ($ in millions, except per share data): As Reported Other Long-Lived Asset Impairment Restructuring Expenses As Adjusted Reported Currency Impact of Foreign Currency Exchange Rates As Adjusted Constant Currency Operating income (loss) $ (6.7 ) $ 0.1 $ 15.8 $ 9.2 $ 1.1 $ 10.3 Operating margin (% of net sales) (2.9 )% 3.9 % 4.3 % Interest expense 4.5 — — 4.5 Other income (expense) - net (3.3 ) — — (3.3 ) Income (loss) before income taxes (14.5 ) 0.1 15.8 1.4 Provision for income taxes 3.4 — 3.3 6.7 Less: Net income attributable to noncontrolling interest (0.3 ) — — (0.3 ) Net income (loss) attributable to Fossil Group, Inc. $ (17.6 ) $ 0.1 $ 12.5 $ (5.0 ) Diluted earnings (loss) per share $ (0.33 ) $ — $ 0.23 $ (0.10 ) For the 13 Weeks Ended March 30, 2024 ($ in millions, except per share data): As Reported Restructuring Cost of Sales Other Long-Lived Asset Impairment Restructuring Expenses As Adjusted Reported Currency Impact of Foreign Currency Exchange Rates As Adjusted Constant Currency Operating income (loss) $ (29.2 ) $ (0.2 ) $ 0.4 $ 10.1 $ (18.9 ) $ (0.6 ) $ (19.5 ) Operating margin (% of net sales) (11.5 )% (7.5 )% (7.6 )% Interest expense 5.1 — — 5.1 Other income (expense) - net 3.9 — — 3.9 Income (loss) before income taxes (30.4 ) $ (0.2 ) 0.4 10.1 (20.1 ) Provision for income taxes (6.1 ) $ — 0.1 2.1 (3.9 ) Less: Net income attributable to noncontrolling interest — — — — — Net income (loss) attributable to Fossil Group, Inc. $ (24.3 ) $ (0.2 ) $ 0.3 $ 8.0 $ (16.2 ) Diluted earnings (loss) per share $ (0.46 ) $ — $ 0.01 $ 0.15 $ (0.30 ) Store Count Information March 30, 2024 Opened Closed April 5, 2025 Americas 135 0 33 102 Europe 73 0 18 55 Asia 69 5 11 63 Total stores 277 5 62 220Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
15-04-2025
- Business
- Yahoo
Fossil Group, Inc. Announces Inducement Grants Under Nasdaq Listing Rule 5635(C)(4)
RICHARDSON, Texas, April 15, 2025 (GLOBE NEWSWIRE) -- Fossil Group, Inc. (NASDAQ: FOSL) (the 'Company') today announced that it is granting equity awards as a material inducement to the employment of the Company's newly-hired Chief Digital Information Officer and General Manager EMEA, Antonio Carriero; Chief Commercial Officer, Joe Martin; and Chief Financial Officer, Randy Greben. In connection with the appointments of Carriero effective February 12, 2025, Martin effective February 17, 2025, and Greben effective March 17, 2025, the Company is granting Carriero an employment inducement award consisting of 100,000 time-based restricted stock units ('RSUs'), Martin an employment inducement award consisting of 129,581 RSUs and Greben an employment inducement award consisting of 150,000 RSUs. All three grants have an effective grant date of April 15, 2025 (the 'Grant Date'). The RSUs will vest one third on the first, second and third anniversaries, respectively, of the Grant Date, subject to each officer's continuous employment with the Company on each vesting date. The inducement awards to Carriero, Martin and Greben were granted as a material inducement to their employment and were approved by the Company's Compensation and Talent Management Committee on March 4, 2025, in accordance with Nasdaq Listing Rule 5635(c)(4). The awards were granted outside the Company's equity incentive plan. About Fossil Group, Inc. Fossil Group, Inc. is a global design, marketing, distribution and innovation company specializing in lifestyle accessories. Under a diverse portfolio of owned and licensed brands, our offerings include watches, jewelry, handbags, small leather goods, belts and sunglasses. We are committed to delivering the best in design and innovation across our owned brands, Fossil, Michele, Relic, Skagen and Zodiac, and licensed brands, Armani Exchange, Diesel, Emporio Armani, kate spade new york, Michael Kors and Tory Burch. We bring each brand story to life through an extensive distribution network across numerous geographies, categories, and channels. Certain press release and SEC filing information concerning the Company is also available at Global Corporate Communications: James Webb Fossil Group jwebb1@ Investor Relations: Christine Greany The Blueshirt Group christine@ in to access your portfolio
