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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.
Revenue by Segment
Revenue by Geographic Location
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
Historical Earnings Impact
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Avg. Return Before/After Earnings
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