Loading...
•
Jul 04, 2020
Fossil Q2 2020 Earnings Report
Fossil's financial performance was negatively impacted by COVID-19 related store closures, but digital channels showed strong growth and cost reduction efforts led to lower operating expenses.
Key Takeaways
Fossil Group's Q2 2020 net sales decreased by 48% due to COVID-19 related store closures, but e-commerce sales increased significantly. The company reduced operating expenses and maintained a strong cash position. They are not providing full year guidance due to macro uncertainties.
Worldwide net sales decreased 48% to $259 million due to COVID-19 impacts.
E-commerce sales from owned websites increased 138% and third-party marketplaces increased 20%.
Gross margin increased 140 basis points to 54.3% due to e-commerce mix and reduced licensor royalty costs.
Operating expenses decreased by $86 million, or 33%, due to NWF 2.0 program and cost reduction efforts.
Fossil
Fossil
Fossil Revenue by Segment
Fossil Revenue by Geographic Location
Revenue by Segment
Watches Revenue
CapyFin.comLeathers Revenue
CapyFin.comJewelry Revenue
CapyFin.comOther Revenue
CapyFin.comRevenue by Geographic Location
Americas Revenue
CapyFin.comEurope Revenue
CapyFin.comAsia Revenue
CapyFin.comCorporate Revenue
CapyFin.com Forward Guidance
The Company anticipates that third quarter worldwide net sales will decline in the range of 35% to 45%, reflecting continued contraction in retail and wholesale, partly offset by ongoing strength in e-commerce channels.
Positive Outlook
- Ongoing strength in e-commerce channels
Challenges Ahead
- Continued contraction in retail
- Continued contraction in wholesale
- Macro uncertainties
- Fluid COVID-19 impacts
Revenue & Expenses
Visualization of income flow from segment revenue to net income