Fossil Group Inc
NASDAQ:FOSL
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Fossil Group Inc
Fossil Group, Inc. engages in the design, marketing and distribution of consumer fashion accessories. The company is headquartered in Richardson, Texas and currently employs 6,900 full-time employees. The firm offers line of men's and women's fashion traditional watches, smartwatches, jewelry, handbags, small leather goods, belts and sunglasses. The firm's segments include Americas, Europe and Asia. The Americas is comprised of sales from its operations in the United States, Canada and Latin America. The Europe segment is comprised of sales to customers based in European countries, the Middle East and Africa. The Asia segment is comprised of sales to customers based in Australia, China, India, Indonesia, Japan, Malaysia, New Zealand, Singapore, South Korea and Thailand. The firm's owned brands include FOSSIL, SKAGEN, MICHELE, RELIC and ZODIAC and licensed brands ARMANI EXCHANGE, DIESEL, DKNY, EMPORIO ARMANI, KATE SPADE NEW YORK, MICHAEL KORS, PUMA, and TORY BURCH. Its products are distributed through wholesale, retail stores, commercial Website, and others.
Fossil Group, Inc. engages in the design, marketing and distribution of consumer fashion accessories. The company is headquartered in Richardson, Texas and currently employs 6,900 full-time employees. The firm offers line of men's and women's fashion traditional watches, smartwatches, jewelry, handbags, small leather goods, belts and sunglasses. The firm's segments include Americas, Europe and Asia. The Americas is comprised of sales from its operations in the United States, Canada and Latin America. The Europe segment is comprised of sales to customers based in European countries, the Middle East and Africa. The Asia segment is comprised of sales to customers based in Australia, China, India, Indonesia, Japan, Malaysia, New Zealand, Singapore, South Korea and Thailand. The firm's owned brands include FOSSIL, SKAGEN, MICHELE, RELIC and ZODIAC and licensed brands ARMANI EXCHANGE, DIESEL, DKNY, EMPORIO ARMANI, KATE SPADE NEW YORK, MICHAEL KORS, PUMA, and TORY BURCH. Its products are distributed through wholesale, retail stores, commercial Website, and others.
Balance Sheet Transformation: Fossil completed a major bond restructuring, extending debt maturity to 2029 and securing over $32 million in new capital, giving the company more financial flexibility.
Sales & Channel Trends: Q3 net sales were $267 million, down 7% year-over-year, but slightly ahead of expectations due to strong wholesale performance and improved retail stores.
Margin Discipline: Gross margin for the quarter was 48.7%, down 70 basis points versus last year, primarily due to minimum royalty true-ups, but underlying margin trends are improving thanks to less discounting and product mix.
Cost Savings: Fossil delivered over $60 million in cost savings year-to-date, reducing SG&A expenses by 10% and closing 44 stores with minimal costs.
Inventory Management: Inventory was down 26% year-over-year, reflecting tighter controls and more efficient product selection, supporting higher margins.
Guidance Reiterated: Full-year guidance was reiterated: net sales expected to decline in the mid-teens due to store closures, and adjusted operating margin expected to be breakeven to slightly positive.
Regional Highlights: Asia (especially India and Japan) showed strong performance in traditional watches and jewelry, while China remains challenging.
Brand & Product Strength: Collaborations (including Nick Jonas and Fantastic Four) drove strong brand engagement, higher average unit retail, and expanded to new demographics.