Fossil Group, Inc. (NASDAQ: FOSL) today announced financial results
for the first quarter ended March 30, 2024.
First Quarter Summary
- First quarter worldwide net sales decreased to $255 million,
down 22% on a reported basis and 21% in constant currency,
reflecting five points of impact related to the Company’s strategic
actions to exit the smartwatch category and optimize its retail
store portfolio.
- Gross margins expanded 300 basis points to 52.4%, primarily
reflecting progress under the Company’s Transform and Grow ("TAG")
Plan.
- Selling, general and administrative (“SG&A”) expenses of
$152 million were down 20% versus last year mainly due to lower
compensation costs as a result of efficiencies resulting from the
Company’s TAG Plan.
- First quarter operating loss of $29 million compared to $37
million a year ago. Adjusted operating loss of $19 million compared
to adjusted operating loss of $25 million last year.
- Inventory totaled $224 million, a decrease of 33% versus a year
ago; cash and cash equivalents of $113 million at quarter end.
- Subsequent to quarter end, the Company received an anticipated
US tax refund of $57 million associated with NOL carryback
provisions from the CARES Act.
“We started the year with solid execution of our
TAG Plan, which drove gross margin expansion and operating expense
reduction, enabling us to narrow our adjusted operating loss versus
a year ago,” said Jeffrey Boyer, Interim CEO. “While we continue to
navigate challenging top line trends, we are acting with urgency to
stabilize the business, taking definitive actions to strengthen our
balance sheet and progressing with a strategic review of our
business model and capital structure. As we focus on strengthening
our operating model and creating shareholder value, we are pleased
to have recently welcomed two new Directors to our Board who bring
meaningful experience across operations, retail, turnarounds,
governance and leadership.”
First Quarter 2024 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
$254.9 million, a decrease of 21.6% on a reported basis and 21.5%
in constant currency compared to $325.0 million in the first
quarter of fiscal 2023. The sales decrease was largely driven by
overall category, consumer and channel softness. Declines in
smartwatch sales and our store rationalization initiatives
comprised approximately 5 points of the sales decline in the first
quarter. Net sales, in constant currency, declined 21% in the
Americas, 26% in Europe and 15% in Asia. Wholesale sales declined
21% while our direct to consumer sales decreased 22% on a constant
currency basis. Within our direct to consumer channels, comparable
retail sales declined 14%. In our major product categories,
traditional watch sales declined 17% in constant currency in the
first quarter compared to the prior year period. The leathers
category decreased 32% and jewelry sales declined 9% in constant
currency during the first quarter. From a brand lens, the majority
of the brands in our portfolio decreased in the first quarter.
- Gross profit
totaled $133.5 million compared to $160.7 million in the first
quarter of 2023. Gross margin increased 300 basis points to 52.4%
versus 49.4% a year ago. The year-over-year increase primarily
reflects exiting the smartwatch category as part of our TAG plan,
reduced freight costs, improved product margins in our core
categories, and favorable currency impacts.
- Operating expenses
totaled $162.7 million, down 18% compared to the prior year period.
As a percentage of net sales, operating expenses were 63.8% in the
first quarter of 2024 compared to 60.9% in the prior year first
quarter. Operating expenses in the first quarter of 2024 included
$10.1 million of restructuring costs, primarily related to employee
costs and professional services, while operating expenses in the
first quarter of 2023 included $7.1 million of restructuring costs.
SG&A expenses were $152.2 million, down 20% compared to the
first quarter of 2023. As a percentage of net sales, SG&A
expenses were 59.7% in the first quarter of 2024 compared to 58.7%
in the prior year first quarter, largely driven by decreased
sales.
- Operating loss was
$29.2 million compared to $37.3 million in the first quarter of
2023. Operating margin of (11.5)% in the first quarter of 2024 was
flat with the prior year first quarter. Adjusted operating loss
totaled $18.9 million compared to $24.8 million in the first
quarter of 2023. Adjusted operating margin was (7.5)% in the first
quarter of 2024 compared to (7.7)% in the prior year first
quarter.
- Interest expense
increased slightly to $5.1 million compared to $5.0 million in the
first quarter of 2023.
- Other income
(expense) was income of $3.9 million compared to income of
$2.7 million in the first quarter of 2023.
- Income (loss) before income
taxes was $(30.4) million compared to $(39.6) million in
the first quarter of 2023.
- Adjusted EBITDA
was $(10.7) million, or (4.2)% of net sales in the first quarter of
2024 and $(16.4) million, or (5.0)% in the prior year period.
- Provision (benefit) for
income taxes was a benefit of $6.1 million, resulting in
an effective income tax rate of 20.1% compared to expense of $1.6
million and an effective tax rate of (4.1)% in the prior year. The
effective tax rate in the first quarter of 2024 was favorable as
compared to the prior year due to the Company recognizing $9.6
million of favorable discrete items.
- Net loss totaled
$24.3 million with net loss per diluted share of $0.46, which
compares to a net loss of $41.3 million and net loss per diluted
share of $0.80 in the prior year period. Adjusted net loss for the
first quarter was $16.2 million with adjusted net loss per diluted
share of $0.30 compared to adjusted net loss of $31.5 million with
adjusted net loss per diluted share of $0.61 in the prior year
period. During the first quarter of 2024, currencies favorably
affected net loss per diluted share by approximately $0.03.
Balance Sheet Summary
As of March 30, 2024, the Company had total
liquidity of $122.8 million, including $112.9 million of cash and
cash equivalents and $9.9 million of availability under its
revolving credit facility. Inventories at the end of the first
quarter of 2024 totaled $224.1 million, a decrease of 33.4% versus
a year ago. Total debt was $203.4 million.
TAG Plan Update
The Company remains on track with its TAG Plan,
which was announced in March 2023 and expanded in August 2023. The
TAG plan is a comprehensive operational plan, designed to reduce
operating expenses, improve operating margins and advance the
Company’s commitment to profitable growth. The plan covers 7 major
work streams with a target to drive $300 million in annualized
operating income benefits by 2025. The TAG Plan generated
annualized operating income benefits of approximately $125 million
in 2023 and is expected to generate additional annualized operating
income benefits of at least $100 million in 2024. Restructuring
costs associated with our TAG Plan are estimated to be $35 million
in fiscal year 2024 compared to $49 million in fiscal year
2023.
Strategic Business Review
In March 2024, the Company announced a strategic
review of its current business model and capital structure. This
includes efforts to optimize its business model through additional
changes to its operations, as well as further structural cost
reductions, which are under consideration. The Company anticipates
this effort will expand on its current TAG Plan and could include
additional debt and equity financing options, including
monetization of various assets to strengthen its balance sheet. The
Company has retained Evercore to act as its financial advisor.
Outlook
The Company is reiterating its full year
financial outlook for 2024. Worldwide net sales are expected to be
approximately $1.2 billion, reflecting consumer and channel
softness, as well as approximately $100 million of negative impact
related to the exit of its smartwatch business, and the closure of
Fossil retail stores. Fiscal year adjusted operating margin(1) is
expected to be in the range of -3% to -5%. The Company expects to
generate positive free cash flow(2) in full year 2024, inclusive of
tax refunds of approximately $57 million, which were received in
the second quarter of 2024.
(1) A reconciliation of adjusted operating
margin, 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 margin. (2) Free cash flow is a
non-GAAP financial measure, defined as net cash from operating
activities less net cash used in investing activities. A
corresponding reconciliation of free cash flow to a corresponding
GAAP measure is not available on a forward-looking basis without
unreasonable effort.
Safe Harbor
Certain statements contained herein that are not
historical facts, including, but not limited to, statements
regarding our outlook, expected financial position, TAG plan
benefits and expenses, liquidity and strategic review, 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: increased political uncertainty, the effect of
worldwide economic conditions; the effect of pandemic; risks
related to the success of our restructuring program; the impact of
any activist shareholders; the failure to meet the continued
listing requirements of Nasdaq; 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; a data security or privacy
breach or information systems disruptions; changes in foreign
currency valuations in relation to the U.S. dollar; lower levels of
consumer spending resulting from inflation, 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, DKNY, 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
www.fossilgroup.com.
Investor Relations: |
|
Christine GreanyThe Blueshirt Group(858)
722-7815christine@blueshirtgroup.com |
|
|
|
Consolidated Income Statement Data($ in millions, except
per share data): |
For the 13 Weeks EndedMarch
30, 2024 |
|
For the 13 Weeks EndedApril
1, 2023 |
Net sales |
$ |
254.9 |
|
|
$ |
325.0 |
|
Cost of
sales |
|
121.4 |
|
|
|
164.3 |
|
Gross profit |
|
133.5 |
|
|
|
160.7 |
|
Gross
margin |
|
52.4 |
% |
|
|
49.4 |
% |
Operating expenses: |
|
|
|
Selling, general and administrative expenses |
|
152.2 |
|
|
|
190.8 |
|
Other long-lived asset impairments |
|
0.4 |
|
|
|
0.1 |
|
Restructuring charges |
|
10.1 |
|
|
|
7.1 |
|
Total
operating expenses |
$ |
162.7 |
|
|
$ |
198.0 |
|
Total
operating expenses (% of net sales) |
|
63.8 |
% |
|
|
60.9 |
% |
Operating income (loss) |
|
(29.2 |
) |
|
|
(37.3 |
) |
Operating margin |
|
(11.5 |
)% |
|
|
(11.5 |
)% |
Interest
expense |
|
5.1 |
|
|
|
5.0 |
|
Other
income (expense) - net |
|
3.9 |
|
|
|
2.7 |
|
Income
(loss) before income taxes |
|
(30.4 |
) |
|
|
(39.6 |
) |
Provision for income taxes |
|
(6.1 |
) |
|
|
1.6 |
|
Less: Net income attributable to noncontrolling interest |
|
— |
|
|
|
0.1 |
|
Net
income (loss) attributable to Fossil Group, Inc. |
$ |
(24.3 |
) |
|
$ |
(41.3 |
) |
Earnings
per share: |
|
|
|
Basic |
$ |
(0.46 |
) |
|
$ |
(0.80 |
) |
Diluted |
$ |
(0.46 |
) |
|
$ |
(0.80 |
) |
Weighted
average common shares outstanding: |
|
|
|
Basic |
|
52.5 |
|
|
|
51.8 |
|
Diluted |
|
52.5 |
|
|
|
51.8 |
|
|
|
|
|
|
|
|
|
Consolidated Balance Sheet Data ($ in
millions): |
March 30, 2024 |
|
April 1, 2023 |
Assets: |
|
|
|
Cash and cash equivalents |
$ |
112.9 |
|
|
$ |
127.1 |
|
Accounts receivable - net |
|
134.4 |
|
|
|
168.9 |
|
Inventories |
|
224.1 |
|
|
|
336.5 |
|
Other current assets |
|
165.9 |
|
|
|
172.0 |
|
Total current assets |
|
637.3 |
|
|
|
804.5 |
|
Property, plant and equipment - net |
|
54.4 |
|
|
|
— |
|
Operating lease right-of-use assets |
|
142.3 |
|
|
|
147.2 |
|
Intangible and other assets - net |
|
57.0 |
|
|
|
55.8 |
|
Total long-term assets |
|
253.7 |
|
|
|
203.0 |
|
Total assets |
$ |
891.0 |
|
|
$ |
1,007.5 |
|
|
|
|
|
Liabilities and stockholders’ equity: |
|
|
|
Accounts payable, accrued expenses and other current
liabilities |
$ |
294.9 |
|
|
$ |
304.6 |
|
Short-term debt |
|
0.5 |
|
|
|
0.5 |
|
Total current liabilities |
|
295.4 |
|
|
|
305.1 |
|
Long-term debt |
|
202.9 |
|
|
|
234.6 |
|
Long-term operating lease liabilities |
|
129.1 |
|
|
|
140.8 |
|
Other long-term liabilities |
|
37.0 |
|
|
|
39.2 |
|
Total long-term liabilities |
|
369.0 |
|
|
|
414.6 |
|
Stockholders’ equity |
|
226.6 |
|
|
|
366.3 |
|
Total liabilities and stockholders’ equity |
$ |
891.0 |
|
|
$ |
1,086.0 |
|
|
|
|
|
|
|
|
|
Constant Currency Financial
Information
The following table presents the Company’s
business segment and product net sales on a constant currency basis
which are non-GAAP financial measures. To calculate net sales on a
constant currency basis, net sales 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 13 weeks ended March 30, 2024 |
|
For the 13 weeks ended April 1, 2023 |
($ in millions) |
As Reported |
|
Impact of Foreign Currency Exchange Rates |
|
Constant Currency |
|
As Reported |
Segment: |
|
|
|
|
|
|
|
Americas |
$ |
110.0 |
|
|
$ |
(0.8 |
) |
|
$ |
109.2 |
|
|
$ |
137.9 |
|
Europe |
|
78.7 |
|
|
|
(1.0 |
) |
|
|
77.7 |
|
|
|
105.7 |
|
Asia |
|
65.6 |
|
|
|
2.1 |
|
|
|
67.7 |
|
|
|
80.1 |
|
Corporate |
|
0.6 |
|
|
|
— |
|
|
|
0.6 |
|
|
|
1.3 |
|
Total net sales |
$ |
254.9 |
|
|
$ |
0.3 |
|
|
$ |
255.2 |
|
|
$ |
325.0 |
|
|
|
|
|
|
|
|
|
Product Categories: |
|
|
|
|
|
|
|
Watches: |
|
|
|
|
|
|
|
Traditional watches |
$ |
186.5 |
|
|
$ |
— |
|
|
$ |
186.5 |
|
|
$ |
225.4 |
|
Smartwatches |
|
8.9 |
|
|
|
— |
|
|
|
8.9 |
|
|
|
24.4 |
|
Total watches |
|
195.4 |
|
|
$ |
— |
|
|
|
195.4 |
|
|
|
249.8 |
|
Leathers |
|
27.6 |
|
|
|
0.2 |
|
|
|
27.8 |
|
|
|
40.3 |
|
Jewelry |
|
26.3 |
|
|
|
0.1 |
|
|
|
26.4 |
|
|
|
29.0 |
|
Other |
|
5.6 |
|
|
|
— |
|
|
|
5.6 |
|
|
|
5.9 |
|
Total net sales |
$ |
254.9 |
|
|
$ |
0.3 |
|
|
$ |
255.2 |
|
|
$ |
325.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA, Adjusted operating
income (loss), Adjusted net income (loss) and Adjusted earnings
(loss) per share
Adjusted EBITDA, 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 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),
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), 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), 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 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 |
) |
|
Fiscal 2022 |
|
Fiscal 2023 |
|
|
($ in
millions): |
Q2 |
|
Q3(1) |
|
Q4 |
|
Q1 |
|
Total |
Income (loss) before income taxes |
$ |
(16.9 |
) |
|
$ |
15.5 |
|
|
$ |
(4.0 |
) |
|
$ |
(39.6 |
) |
|
$ |
(45.0 |
) |
Plus: |
|
|
|
|
|
|
|
|
|
Interest expense |
|
4.3 |
|
|
|
5.1 |
|
|
|
5.8 |
|
|
|
5.0 |
|
|
|
20.2 |
|
Amortization and depreciation |
|
5.8 |
|
|
|
5.6 |
|
|
|
5.7 |
|
|
|
5.1 |
|
|
|
22.2 |
|
Impairment expense |
|
0.2 |
|
|
|
0.6 |
|
|
|
1.2 |
|
|
|
0.1 |
|
|
|
2.1 |
|
Other non-cash charges |
|
(0.2 |
) |
|
|
(0.4 |
) |
|
|
(0.3 |
) |
|
|
(0.2 |
) |
|
|
(1.1 |
) |
Stock-based compensation |
|
3.8 |
|
|
|
(0.3 |
) |
|
|
2.3 |
|
|
|
1.4 |
|
|
|
7.2 |
|
Restructuring expense |
|
2.9 |
|
|
|
— |
|
|
|
0.7 |
|
|
|
7.1 |
|
|
|
10.7 |
|
Restructuring cost of sales |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
5.3 |
|
|
|
5.3 |
|
Unamortized debt issuance costs included in loss on extinguishment
of debt |
|
— |
|
|
|
— |
|
|
|
1.1 |
|
|
|
— |
|
|
|
1.1 |
|
Less: |
|
|
|
|
|
|
|
|
|
Interest Income |
|
0.2 |
|
|
|
0.1 |
|
|
|
0.4 |
|
|
|
0.6 |
|
|
|
1.3 |
|
Adjusted EBITDA |
$ |
(0.3 |
) |
|
$ |
26.0 |
|
|
$ |
12.1 |
|
|
$ |
(16.4 |
) |
|
$ |
21.4 |
|
|
|
|
|
|
|
|
|
|
|
(1) Prior period amounts have been adjusted to conform to the
current period presentation.
The following tables reconcile 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 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 |
Operating income (loss) |
$ |
(29.2 |
) |
$ |
(0.2 |
) |
$ |
0.4 |
|
$ |
10.1 |
|
$ |
(18.9 |
) |
Operating margin (% of net sales) |
|
(11.5 |
)% |
|
|
|
|
|
|
|
|
|
|
(7.5 |
)% |
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 |
) |
|
For the 13 Weeks Ended April 1, 2023 |
($ in millions, except
per share data): |
As Reported |
Restructuring Cost of Sales |
Other Long-Lived Asset Impairment |
Restructuring Expenses |
As Adjusted |
Operating income (loss) |
$ |
(37.3 |
) |
$ |
5.3 |
|
$ |
0.1 |
|
$ |
7.1 |
|
$ |
(24.8 |
) |
Operating margin (% of net sales) |
|
(11.5 |
)% |
|
|
|
|
|
|
|
|
|
|
(7.7 |
)% |
Interest expense |
|
5.0 |
|
|
|
— |
|
|
— |
|
|
5.0 |
|
Other income (expense) - net |
|
2.7 |
|
|
|
— |
|
|
— |
|
|
2.7 |
|
Income (loss) before income taxes |
|
(39.6 |
) |
$ |
5.3 |
|
|
0.1 |
|
|
7.1 |
|
|
(27.1 |
) |
Provision for income taxes |
|
1.6 |
|
$ |
1.1 |
|
|
— |
|
|
1.5 |
|
|
4.2 |
|
Less: Net income attributable to noncontrolling interest |
|
0.1 |
|
|
— |
|
|
— |
|
|
— |
|
|
0.1 |
|
Net income (loss) attributable to Fossil Group, Inc. |
$ |
(41.3 |
) |
$ |
4.2 |
|
$ |
— |
|
$ |
5.6 |
|
$ |
(31.5 |
) |
Diluted earnings (loss) per
share |
$ |
(0.80 |
) |
$ |
0.08 |
|
$ |
— |
|
$ |
0.11 |
|
$ |
(0.61 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Store Count Information
|
|
April 1, 2023 |
|
|
|
Opened |
|
|
|
Closed |
|
|
|
March 30, 2024 |
|
Americas |
|
149 |
|
|
|
2 |
|
|
|
16 |
|
|
|
135 |
|
Europe |
|
99 |
|
|
|
2 |
|
|
|
28 |
|
|
|
73 |
|
Asia |
|
79 |
|
|
|
0 |
|
|
|
10 |
|
|
|
69 |
|
Total stores |
|
327 |
|
|
|
4 |
|
|
|
54 |
|
|
|
277 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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