Fossil Group, Inc. (NASDAQ: FOSL) today announced financial results
for the fiscal second quarter ended June 29, 2024.
Second Quarter Summary
- Second quarter worldwide net sales decreased to $260 million,
down 19% on a reported basis and 18% in constant currency, which
includes five points of negative impact related to the Company’s
strategic actions to exit the smartwatch category and optimize its
retail store portfolio.
- Gross margins expanded 390 basis points to 52.6%, primarily
reflecting progress under the Company’s Transform and Grow ("TAG")
Plan.
- Selling, general and administrative (“SG&A”) expenses of
$154 million were down 18% versus last year, primarily due to lower
compensation costs as a result of efficiencies from the Company’s
TAG Plan.
- Second quarter operating loss of $34 million compared to
operating loss of $35 million a year ago. Adjusted operating
loss of $17 million compared to adjusted operating loss of $28
million last year.
- Inventory totaled $202 million, a decrease of 38% versus a year
ago; the Company had total liquidity of $156 million at quarter
end, including cash and cash equivalents of $105 million and $51
million of availability under its revolving credit facility.
“Our second quarter results were in line with
our expectations and reflect continued progress under our TAG
Plan,” said Jeffrey Boyer, Interim CEO. "Strong execution of our
initiatives resulted in gross margin expansion, cost reduction and
adjusted operating margin improvement in the second quarter. Our
teams remain focused on further advancing our TAG Plan, while
progressing on our actions to stabilize the business, strengthen
the balance sheet and conduct a strategic review of our business
model and capital structure.”
Second 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
$260.0 million, a decrease of 19.3% on a reported basis and 18.5%
in constant currency compared to $322.0 million in the second
quarter of fiscal 2023. The sales decrease was largely driven by
overall category, consumer and channel softness. Declines in
smartwatch sales resulting from our exit of the category, and our
store rationalization initiatives comprised approximately 5 points
of the sales decline in the second quarter. Net sales, in constant
currency, declined 18% in the Americas, 15% in Europe and 20% in
Asia. Wholesale sales declined 16% while our direct to consumer
sales decreased 22% on a constant currency basis. Within our direct
to consumer channels, comparable retail sales declined 10%. In our
major product categories, traditional watch sales declined 17% in
constant currency in the second quarter compared to the prior year
period. The leathers category decreased 18% and jewelry sales
declined 10% in constant currency during the second quarter. From a
brand lens, the majority of the brands in our portfolio decreased
in the second quarter.
- Gross profit
totaled $136.9 million compared to $156.7 million in the
second quarter of 2023. Gross margin increased 390 basis points to
52.6% versus 48.7% a year ago. The year-over-year increase is
primarily due to initiatives under our TAG Plan, including our exit
from the smartwatch category and improved product margins in our
core categories.
- Operating expenses
totaled $170.9 million, down 11% compared to $192.0 million a year
ago. As a percentage of net sales, operating expenses were 65.7% in
the second quarter of 2024 compared to 59.6% in the prior year
second quarter. Operating expenses in the second quarter of 2024
included $16.7 million of restructuring costs, primarily related to
professional services and employee costs, while operating expenses
in the second quarter of 2023 included $4.6 million of
restructuring costs. SG&A expenses were $153.6 million, down
18% compared to the second quarter of 2023. As a percentage of net
sales, SG&A expenses were 59.1% in the second quarter of 2024
compared to 58.1% in the prior year second quarter, largely driven
by decreased sales.
- Operating loss was
$34.0 million compared to $35.3 million in the second quarter of
2023. Operating margin was (13.1)% in the second quarter of 2024
compared to (11.0)% in the prior year second quarter. Adjusted
operating loss totaled $16.7 million compared to $27.6 million in
the second quarter of 2023. Adjusted operating margin was (6.4)% in
the second quarter of 2024 compared to (8.6)% in the prior year
second quarter.
- Interest expense
decreased to $4.1 million compared to $5.3 million in the second
quarter of 2023, primarily driven by a lower debt balance.
- Other income
(expense) was $1.5 million compared to $7.2 million in the
second quarter of 2023, reflecting decreased net currency gains in
the second quarter of 2024 as compared to the prior year second
quarter.
- Income (loss) before income
taxes was $(36.6) million compared to $(33.5) million in
the second quarter of 2023.
- Adjusted EBITDA
was $(11.7) million, or (4.5)% of net sales in the second quarter
of 2024 and $(15.4) million, or (4.8)% of net sales in the prior
year quarter.
- Provision (benefit) for
income taxes was an expense of $2.2 million, resulting in
an effective income tax rate of (6.0)% compared to a benefit of
$7.2 million and an effective tax rate of 21.5% in the prior year.
The effective tax rate in the second quarter of 2024 differed from
the prior year second quarter primarily due to a change in the
Company’s global mix of earnings.
- Net loss totaled
$38.8 million with net loss per diluted share of $0.73, which
compares to net loss of $26.5 million and net loss per diluted
share of $0.51 in the prior year quarter. Adjusted net loss for the
second quarter was $25.1 million with adjusted net loss per diluted
share of $0.47 compared to adjusted net loss of $20.4 million with
adjusted net loss per diluted share of $0.40 in the prior year
quarter. During the second quarter of 2024, currencies unfavorably
affected net loss per diluted share by approximately $0.08.
Balance Sheet Summary
As of June 29, 2024, the Company had total
liquidity of $156.0 million, including $104.9 million of cash and
cash equivalents and $50.8 million of availability under its
revolving credit facility. Inventories at the end of the second
quarter of 2024 totaled $202.1 million, a decrease of 38% versus a
year ago. Total debt was $159 million.
Transform and Grow Plan
The Company remains on track with its TAG Plan,
a comprehensive operational plan designed to reduce operating
expenses, improve operating margins and advance the Company’s
commitment to profitable growth. The plan encompasses multiple
workstreams with a target to drive $300 million in annualized
operating income benefits by the end of 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 the TAG Plan are
estimated to be $40 million in fiscal year 2024.
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
owned 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 a 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 Greany |
| |
The Blueshirt Group |
| |
(858) 722-7815 |
| |
christine@blueshirtgroup.com |
| Consolidated Income
Statement Data |
For the 13Weeks Ended |
|
For the 13Weeks Ended |
|
For the 26 Weeks Ended |
|
For the 26 Weeks Ended |
| ($ in millions, except
per share data): |
June 29, 2024 |
|
July 1, 2023 |
|
June 29, 2024 |
|
July 1, 2023 |
|
Net sales |
$ |
260.0 |
|
|
$ |
322.0 |
|
|
$ |
514.9 |
|
|
$ |
647.0 |
|
| Cost of sales |
|
123.1 |
|
|
|
165.3 |
|
|
|
244.6 |
|
|
|
329.6 |
|
|
Gross profit |
|
136.9 |
|
|
|
156.7 |
|
|
|
270.3 |
|
|
|
317.4 |
|
| Gross margin |
|
52.6 |
% |
|
|
48.7 |
% |
|
|
52.5 |
% |
|
|
49.1 |
% |
| Operating expenses: |
|
|
|
|
|
|
|
|
Selling, general and administrative expenses |
|
153.6 |
|
|
|
187.2 |
|
|
|
305.9 |
|
|
|
378.1 |
|
|
Other long-lived asset impairments |
|
0.6 |
|
|
|
0.2 |
|
|
|
1.0 |
|
|
|
0.2 |
|
|
Restructuring charges |
|
16.7 |
|
|
|
4.6 |
|
|
|
26.7 |
|
|
|
11.7 |
|
| Total operating expenses |
$ |
170.9 |
|
|
$ |
192.0 |
|
|
$ |
333.6 |
|
|
$ |
390.0 |
|
| Total operating expenses (% of
net sales) |
|
65.7 |
% |
|
|
59.6 |
% |
|
|
64.8 |
% |
|
|
60.3 |
% |
| Operating income (loss) |
|
(34.0 |
) |
|
|
(35.3 |
) |
|
|
(63.3 |
) |
|
|
(72.6 |
) |
| Operating margin |
(13.1 |
)% |
|
(11.0 |
)% |
|
(12.3 |
)% |
|
(11.2 |
)% |
| Interest expense |
|
4.1 |
|
|
|
5.3 |
|
|
|
9.2 |
|
|
|
10.4 |
|
| Other income (expense) - net |
|
1.5 |
|
|
|
7.1 |
|
|
|
5.3 |
|
|
|
9.9 |
|
| Income (loss) before income
taxes |
|
(36.6 |
) |
|
|
(33.5 |
) |
|
|
(67.2 |
) |
|
|
(73.1 |
) |
| Provision (benefit) for income
taxes |
|
2.2 |
|
|
|
(7.2 |
) |
|
|
(3.9 |
) |
|
|
(5.6 |
) |
|
Less: Net income attributable to noncontrolling interest |
|
— |
|
|
|
0.2 |
|
|
|
(0.1 |
) |
|
|
0.3 |
|
| Net income (loss) attributable to
Fossil Group, Inc. |
$ |
(38.8 |
) |
|
$ |
(26.5 |
) |
|
$ |
(63.2 |
) |
|
$ |
(67.8 |
) |
| Earnings per share: |
|
|
|
|
|
|
|
|
Basic |
$ |
(0.73 |
) |
|
$ |
(0.51 |
) |
|
$ |
(1.20 |
) |
|
$ |
(1.30 |
) |
|
Diluted |
$ |
(0.73 |
) |
|
$ |
(0.51 |
) |
|
$ |
(1.20 |
) |
|
$ |
(1.30 |
) |
| Weighted average common shares
outstanding: |
|
|
|
|
|
|
|
|
Basic |
|
52.9 |
|
|
|
52.3 |
|
|
|
52.7 |
|
|
|
52.1 |
|
|
Diluted |
|
52.9 |
|
|
|
52.3 |
|
|
|
52.7 |
|
|
|
52.1 |
|
|
Consolidated Balance Sheet Data ($ in
millions): |
June 29, 2024 |
|
July 1, 2023 |
|
Assets: |
|
|
|
|
Cash and cash equivalents |
$ |
104.9 |
|
$ |
132.1 |
|
Accounts receivable - net |
|
133.1 |
|
|
162.7 |
|
Inventories |
|
202.1 |
|
|
323.9 |
|
Other current assets |
|
102.3 |
|
|
178.9 |
|
Total current assets |
$ |
542.4 |
|
$ |
797.6 |
|
Property, plant and equipment - net |
$ |
47.2 |
|
$ |
75.9 |
|
Operating lease right-of-use assets |
|
140.2 |
|
|
144.9 |
|
Intangible and other assets - net |
|
55.9 |
|
|
55.0 |
|
Total long-term assets |
$ |
243.3 |
|
$ |
275.8 |
|
Total assets |
$ |
785.7 |
|
$ |
1,073.4 |
| |
|
|
|
|
Liabilities and stockholders’ equity: |
|
|
|
|
Accounts payable, accrued expenses and other current
liabilities |
$ |
277.1 |
|
$ |
321.2 |
|
Short-term debt |
|
2.6 |
|
|
0.4 |
|
Total current liabilities |
$ |
279.7 |
|
$ |
321.6 |
|
Long-term debt |
$ |
156.5 |
|
$ |
243.0 |
|
Long-term operating lease liabilities |
|
125.4 |
|
|
135.1 |
|
Other long-term liabilities |
|
37.0 |
|
|
36.8 |
|
Total long-term liabilities |
$ |
318.9 |
|
$ |
414.9 |
|
Stockholders’ equity |
|
187.1 |
|
|
336.9 |
|
Total liabilities and stockholders’ equity |
$ |
785.7 |
|
$ |
1,073.4 |
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 |
|
Net Sales For the 26 Weeks Ended |
|
June 29, 2024 |
|
July 1, 2023 |
|
June 29, 2024 |
|
July 1, 2023 |
|
($ in millions) |
As Reported |
|
Impact of Foreign Currency Exchange Rates |
|
Constant Currency |
|
As Reported |
|
As Reported |
|
Impact of Foreign Currency Exchange Rates |
|
Constant Currency |
|
As Reported |
| Segment: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Americas |
$ |
119.6 |
|
$ |
(0.1 |
) |
|
$ |
119.5 |
|
$ |
146.7 |
|
$ |
229.6 |
|
$ |
(0.9 |
) |
|
$ |
228.7 |
|
$ |
284.6 |
| Europe |
|
74.8 |
|
|
0.5 |
|
|
|
75.3 |
|
|
88.3 |
|
|
153.6 |
|
|
(0.5 |
) |
|
|
153.1 |
|
|
194.0 |
| Asia |
|
65.2 |
|
|
1.9 |
|
|
|
67.1 |
|
|
84.1 |
|
|
130.7 |
|
|
4.0 |
|
|
|
134.7 |
|
|
164.3 |
| Corporate |
|
0.4 |
|
|
— |
|
|
|
0.4 |
|
|
2.9 |
|
|
1.0 |
|
|
— |
|
|
|
1.0 |
|
|
4.1 |
| Total net sales |
$ |
260.0 |
|
$ |
2.3 |
|
|
$ |
262.3 |
|
$ |
322.0 |
|
$ |
514.9 |
|
$ |
2.6 |
|
|
$ |
517.5 |
|
$ |
647.0 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Product categories: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Watches: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Traditional watches |
$ |
194.1 |
|
$ |
1.5 |
|
|
$ |
195.7 |
|
$ |
236.1 |
|
$ |
380.6 |
|
$ |
1.5 |
|
|
$ |
382.1 |
|
$ |
461.5 |
|
Smartwatches |
|
8.4 |
|
|
— |
|
|
|
8.4 |
|
|
17.8 |
|
|
17.3 |
|
|
— |
|
|
|
17.3 |
|
|
42.2 |
| Total watches |
$ |
202.5 |
|
$ |
1.6 |
|
|
$ |
204.1 |
|
$ |
253.9 |
|
$ |
397.9 |
|
$ |
1.5 |
|
|
$ |
399.4 |
|
$ |
503.6 |
| Leathers |
|
27.2 |
|
|
0.2 |
|
|
|
27.4 |
|
|
33.3 |
|
|
54.7 |
|
|
0.5 |
|
|
|
55.2 |
|
|
73.6 |
| Jewelry |
|
24.2 |
|
|
0.4 |
|
|
|
24.6 |
|
|
27.4 |
|
|
50.5 |
|
|
0.6 |
|
|
|
51.1 |
|
|
56.4 |
| Other |
|
6.1 |
|
|
0.1 |
|
|
|
6.2 |
|
|
7.4 |
|
|
11.8 |
|
|
— |
|
|
|
11.8 |
|
|
13.4 |
| Total net sales |
$ |
260.0 |
|
$ |
2.3 |
|
|
$ |
262.3 |
|
$ |
322.0 |
|
$ |
514.9 |
|
$ |
2.6 |
|
|
$ |
517.5 |
|
$ |
647.0 |
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): |
|
|
Q3 |
|
Q4 |
|
Q1 |
|
Q2 |
|
Total |
|
Income (loss) before income taxes |
|
|
$ |
(55.2 |
) |
|
$ |
(27.8 |
) |
|
$ |
(30.4 |
) |
|
$ |
(36.6 |
) |
|
$ |
(150.0 |
) |
|
Plus: |
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense |
|
|
|
5.8 |
|
|
|
5.7 |
|
|
|
5.1 |
|
|
|
4.1 |
|
|
|
20.7 |
|
|
Amortization and depreciation |
|
|
|
4.5 |
|
|
|
4.6 |
|
|
|
4.5 |
|
|
|
3.9 |
|
|
|
17.5 |
|
|
Impairment expense |
|
|
|
0.6 |
|
|
|
1.3 |
|
|
|
0.4 |
|
|
|
0.6 |
|
|
|
2.9 |
|
|
Other non-cash charges |
|
|
|
(0.2 |
) |
|
|
0.1 |
|
|
|
(0.1 |
) |
|
|
0.1 |
|
|
|
(0.1 |
) |
|
Stock-based compensation |
|
|
|
1.5 |
|
|
|
1.1 |
|
|
|
1.0 |
|
|
|
0.6 |
|
|
|
4.2 |
|
|
Restructuring expense |
|
|
|
16.0 |
|
|
|
15.5 |
|
|
|
10.1 |
|
|
|
16.7 |
|
|
|
58.3 |
|
|
Restructuring cost of sales |
|
|
|
(1.3 |
) |
|
|
(1.3 |
) |
|
|
(0.2 |
) |
|
|
— |
|
|
|
(2.8 |
) |
|
Less: |
|
|
|
|
|
|
|
|
|
|
|
|
Interest income |
|
|
|
1.0 |
|
|
|
0.9 |
|
|
|
1.1 |
|
|
|
1.1 |
|
|
|
4.1 |
|
| Adjusted EBITDA |
|
|
$ |
(29.3 |
) |
|
$ |
(1.6 |
) |
|
$ |
(10.7 |
) |
|
$ |
(11.7 |
) |
|
$ |
(53.4 |
) |
| |
|
Fiscal 2022(1) |
|
Fiscal 2023 |
|
|
| ($ in
millions): |
|
Q3 |
|
Q4 |
|
Q1 |
|
Q2 |
|
Total |
|
Income (loss) before income taxes |
|
$ |
15.5 |
|
|
$ |
(4.0 |
) |
|
$ |
(39.6 |
) |
|
$ |
(33.5 |
) |
|
$ |
(61.6 |
) |
|
Plus: |
|
|
|
|
|
|
|
|
|
|
|
Interest expense |
|
|
5.1 |
|
|
|
5.8 |
|
|
|
5.0 |
|
|
|
5.3 |
|
|
|
21.2 |
|
|
Amortization and depreciation |
|
|
5.6 |
|
|
|
5.7 |
|
|
|
5.1 |
|
|
|
4.8 |
|
|
|
21.2 |
|
|
Impairment expense |
|
|
0.6 |
|
|
|
1.2 |
|
|
|
0.1 |
|
|
|
0.2 |
|
|
|
2.1 |
|
|
Other non-cash charges |
|
|
(0.4 |
) |
|
|
(0.3 |
) |
|
|
(0.2 |
) |
|
|
(0.5 |
) |
|
|
(1.4 |
) |
|
Stock-based compensation |
|
|
(0.3 |
) |
|
|
2.3 |
|
|
|
1.4 |
|
|
|
1.6 |
|
|
|
5.0 |
|
|
Restructuring expense |
|
|
— |
|
|
|
0.7 |
|
|
|
7.1 |
|
|
|
4.6 |
|
|
|
12.4 |
|
|
Restructuring cost of sales |
|
|
— |
|
|
|
— |
|
|
|
5.3 |
|
|
|
2.9 |
|
|
|
8.2 |
|
|
Unamortized debt issuance costs included in loss on extinguishment
of debt |
|
|
— |
|
|
|
1.1 |
|
|
|
— |
|
|
|
— |
|
|
|
1.1 |
|
|
Less: |
|
|
|
|
|
|
|
|
|
|
|
Interest income |
|
|
0.1 |
|
|
|
0.4 |
|
|
|
0.6 |
|
|
|
0.8 |
|
|
|
1.9 |
|
| Adjusted EBITDA |
|
$ |
26.0 |
|
|
$ |
12.1 |
|
|
$ |
(16.4 |
) |
|
$ |
(15.4 |
) |
|
$ |
6.3 |
|
| |
|
|
|
|
|
|
|
|
|
|
(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 June 29, 2024 |
| ($ in millions, except
per share data): |
As Reported |
Other Long-Lived Asset Impairment |
Restructuring Expenses |
As Adjusted |
|
Operating income (loss) |
$ |
(34.0 |
) |
$ |
0.6 |
$ |
16.7 |
$ |
(16.7 |
) |
|
Operating margin (% of net sales) |
(13.1 |
)% |
|
|
(6.4 |
)% |
|
Interest expense |
|
(4.1 |
) |
|
— |
|
— |
|
(4.1 |
) |
|
Other income (expense) - net |
|
1.5 |
|
|
— |
|
— |
|
1.5 |
|
|
Income (loss) before income taxes |
|
(36.6 |
) |
|
0.6 |
|
16.7 |
|
(19.3 |
) |
|
Provision (benefit) for income taxes |
|
2.2 |
|
|
0.1 |
|
3.5 |
|
5.8 |
|
|
Less: Net income attributable to noncontrolling interest |
|
0.1 |
|
|
— |
|
— |
|
0.1 |
|
|
Net income (loss) attributable to Fossil Group, Inc. |
$ |
(38.8 |
) |
$ |
0.5 |
$ |
13.2 |
$ |
(25.1 |
) |
| Diluted earnings (loss) per
share |
$ |
(0.73 |
) |
$ |
0.01 |
$ |
0.25 |
$ |
(0.47 |
) |
| |
For the 13 Weeks Ended July 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) |
$ |
(35.3 |
) |
$ |
2.9 |
$ |
0.2 |
$ |
4.6 |
$ |
(27.6 |
) |
|
Operating margin (% of net sales) |
(11.0 |
)% |
|
|
|
(8.6 |
)% |
|
Interest expense |
|
(5.3 |
) |
|
— |
|
— |
|
— |
|
(5.3 |
) |
|
Other income (expense) - net |
|
7.2 |
|
|
— |
|
— |
|
— |
|
7.2 |
|
|
Income (loss) before income taxes |
|
(33.5 |
) |
|
2.9 |
|
0.2 |
|
4.6 |
|
(25.8 |
) |
|
Provision for income taxes |
|
(7.2 |
) |
|
0.6 |
|
— |
|
1.0 |
|
(5.6 |
) |
|
Less: Net income attributable to noncontrolling interest |
|
(0.2 |
) |
|
— |
|
— |
|
— |
|
(0.2 |
) |
|
Net income (loss) attributable to Fossil Group, Inc. |
$ |
(26.5 |
) |
$ |
2.3 |
$ |
0.2 |
$ |
3.6 |
$ |
(20.4 |
) |
| Diluted earnings (loss) per
share |
$ |
(0.51 |
) |
$ |
0.04 |
$ |
— |
$ |
0.07 |
$ |
(0.40 |
) |
| |
For the 26 Weeks Ended June 29, 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) |
$ |
(63.2 |
) |
$ |
(0.2 |
) |
$ |
1.0 |
$ |
26.7 |
$ |
(35.7 |
) |
|
Operating margin (% of net sales) |
(12.3 |
)% |
|
|
|
(6.9 |
)% |
|
Interest expense |
|
(9.2 |
) |
|
— |
|
|
— |
|
— |
|
(9.2 |
) |
|
Other income (expense) - net |
|
5.3 |
|
|
— |
|
|
— |
|
— |
|
5.3 |
|
|
Income (loss) before income taxes |
|
(67.1 |
) |
|
(0.2 |
) |
|
1.0 |
|
26.7 |
|
(39.6 |
) |
|
Provision (benefit) for income taxes |
|
(3.9 |
) |
|
— |
|
|
0.2 |
|
5.6 |
|
1.9 |
|
|
Less: Net income attributable to noncontrolling interest |
|
0.1 |
|
|
— |
|
|
— |
|
— |
|
0.1 |
|
|
Net income (loss) attributable to Fossil Group, Inc. |
$ |
(63.1 |
) |
$ |
(0.2 |
) |
$ |
0.8 |
$ |
21.1 |
$ |
(41.4 |
) |
| Diluted earnings (loss) per
share |
$ |
(1.20 |
) |
$ |
— |
|
$ |
0.02 |
$ |
0.40 |
$ |
(0.78 |
) |
| |
For the 26 Weeks Ended July 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) |
$ |
(72.6 |
) |
$ |
8.2 |
$ |
0.2 |
$ |
11.7 |
$ |
(52.5 |
) |
|
Operating margin (% of net sales) |
(11.2 |
)% |
|
|
|
(8.1 |
)% |
|
Interest expense |
|
(10.4 |
) |
|
— |
|
— |
|
— |
|
(10.4 |
) |
|
Other income (expense) - net |
|
9.9 |
|
|
— |
|
— |
|
— |
|
9.9 |
|
|
Income (loss) before income taxes |
|
(73.1 |
) |
|
8.2 |
|
0.2 |
|
11.7 |
|
(53.0 |
) |
|
Provision for income taxes |
|
(5.6 |
) |
|
1.7 |
|
— |
|
2.5 |
|
(1.4 |
) |
|
Less: Net income attributable to noncontrolling interest |
|
(0.3 |
) |
|
— |
|
— |
|
— |
|
(0.3 |
) |
|
Net income (loss) attributable to Fossil Group, Inc. |
$ |
(67.8 |
) |
$ |
6.5 |
$ |
0.2 |
$ |
9.2 |
$ |
(51.9 |
) |
| Diluted earnings (loss) per
share |
$ |
(1.30 |
) |
$ |
0.12 |
$ |
— |
$ |
0.18 |
$ |
(1.00 |
) |
Store Count Information
|
|
July 1, 2023 |
|
Opened |
|
Closed |
|
June 29, 2024 |
| Americas |
146 |
|
2 |
|
28 |
|
120 |
| Europe |
92 |
|
1 |
|
24 |
|
69 |
| Asia |
77 |
|
2 |
|
10 |
|
69 |
| Total stores |
315 |
|
5 |
|
62 |
|
258 |
Fossil (NASDAQ:FOSL)
Gráfica de Acción Histórica
De Oct 2024 a Nov 2024
Fossil (NASDAQ:FOSL)
Gráfica de Acción Histórica
De Nov 2023 a Nov 2024
