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Jan 02, 2021
Fossil Q4 2020 Earnings Report
Fossil Group's Q4 2020 results reflected improved performance across brands, channels and geographies, with digital sales representing 43% of worldwide net sales.
Key Takeaways
Fossil Group, Inc. reported a decrease in worldwide net sales of 26% for Q4 2020. Despite the decline, the company saw strength in digital sales and sales in Mainland China. The company reduced operating expenses by $68 million and achieved an operating income of $18 million compared to an operating loss in the previous year.
Worldwide net sales decreased 26% on a reported basis.
Digital sales increased 25% compared to the prior year, representing 43% of worldwide net sales.
Gross margin increased to 49.2% from 43.3% a year ago.
Operating income was $18 million compared to an operating loss of $1.0 million a year ago.
Fossil
Fossil
Forward Guidance
For full year 2021, the Company expects worldwide net sales growth of approximately 10% to 15% versus 2020 and Adjusted EBITDA margin of approximately 4% to 6%.
Positive Outlook
- Expects worldwide net sales growth of approximately 10% to 15% versus 2020.
- Anticipates Adjusted EBITDA margin of approximately 4% to 6%.
Challenges Ahead
- Impacts from COVID-19 will continue to pressure sales in the first quarter of 2021.
- Worldwide net sales are expected to decline in the range of 17% to 12% compared to the 14-week quarter ended April 4, 2020.
- Pandemic restrictions in key markets
- Additional week in the 2020 period.