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Apr 01, 2023

Fossil Q1 2023 Earnings Report

Reported a decrease in worldwide net sales, but experienced growth in direct-to-consumer channels and extended licensing agreements.

Key Takeaways

Fossil Group's first quarter 2023 saw a decrease in net sales by 14% to $325 million, driven by declines in all regions and wholesale channels. However, direct-to-consumer net sales increased by 8% in constant currency, with comparable retail sales growth of 13%. The company also extended its licensing agreements with Diesel and Armani.

Worldwide net sales decreased by 14% to $325 million, with declines in all three regions.

Direct-to-consumer net sales increased by 8% in constant currency, with comparable retail sales growth of 13%.

Operating loss was $37 million, compared to $14 million in the previous year.

The company extended its licensing agreements with Diesel and Armani.

Total Revenue
$325M
Previous year: $376M
-13.5%
EPS
-$0.61
Previous year: -$0.37
+64.9%
Gross Margin
49.4%
Previous year: 49%
+0.8%
Gross Profit
$161M
Previous year: $302M
-46.9%
Cash and Equivalents
$127M
Previous year: $163M
-21.8%
Free Cash Flow
-$88.5M
Previous year: -$118M
-24.8%
Total Assets
$1.09B
Previous year: $1.27B
-14.2%

Fossil

Fossil

Fossil Revenue by Geographic Location

Forward Guidance

For the full year 2023, the Company expects worldwide net sales to decline approximately 5% to net sales growth of 1% and full year adjusted operating income margin in the range of approximately 0% to 3%.

Revenue & Expenses

Visualization of income flow from segment revenue to net income