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Dec 28, 2024
Fossil Q4 2024 Earnings Report
Fossil reported a decline in revenue and net income for Q4 2024, but showed improvements in gross margin and adjusted operating income.
Key Takeaways
Fossil Group faced a revenue decline of 18.8% year-over-year in Q4 2024, with all segments and regions experiencing a downturn. However, the company managed to improve its gross margin by 630 basis points and generated positive free cash flow. Adjusted EPS was $0.39, contrasting with a GAAP loss per share of $0.14.
Revenue declined by 18.8% to $342.3 million due to weak consumer demand and store closures.
Gross margin increased to 53.9%, benefiting from product mix improvements and cost efficiencies.
Adjusted operating income improved to $20.1 million, compared to a loss of $8.5 million in Q4 2023.
The company ended the quarter with $123.6 million in cash and $177 million in total liquidity.
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
Fossil expects a continued sales decline in 2025 but plans to improve profitability through cost reductions and store closures.
Positive Outlook
- Gross margin improvements expected to continue.
- SG&A savings of approximately $100 million planned for 2025.
- Strategic shift to core product categories to drive future growth.
- Ongoing transition to a more profitable wholesale and digital model.
- Enhanced liquidity position to support restructuring efforts.
Challenges Ahead
- Expected sales decline in the mid to high teens for 2025.
- Continued pressure on revenue due to store closures.
- Weak consumer demand across major markets.
- Currency headwinds may continue to impact profitability.
- Uncertainty around the impact of strategic changes on long-term growth.
Revenue & Expenses
Visualization of income flow from segment revenue to net income