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Jun 29, 2024
Fossil Q2 2024 Earnings Report
Reported a decrease in worldwide net sales but an expansion in gross margins, reflecting progress under the TAG Plan.
Key Takeaways
Fossil Group's second quarter results showed a decrease in net sales, but gross margins expanded due to the TAG Plan. The company is maintaining its full-year 2024 outlook.
Worldwide net sales decreased by 19% to $260 million.
Gross margins expanded by 390 basis points to 52.6%.
Operating loss was $34 million, compared to $35 million a year ago.
Inventory decreased by 38% versus a year ago, totaling $202 million.
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 is reiterating its full year financial outlook for 2024.
Positive Outlook
- Worldwide net sales are expected to be approximately $1.2 billion.
- Company expects to generate positive free cash flow in full year 2024.
- Includes tax refunds of approximately $57 million, which were received in the second quarter of 2024.
Challenges Ahead
- Reflecting consumer and channel softness.
- Approximately $100 million of negative impact related to the exit of its smartwatch business.
- Closure of owned retail stores.
- Fiscal year adjusted operating margin is expected to be in the range of -3% to -5%.
Revenue & Expenses
Visualization of income flow from segment revenue to net income