Business
Fossil Group, Inc. Reports Fourth Quarter and Fiscal Year 2023 Results
Worldwide Net Revenue and Adjusted Operating Margin in Line with GuidanceAnnounces Strategic Review to Maximize Shareholder ValueCompany Provides Full Year
About this update from Fossil Group, Inc.
[{"type":"text","content":"Worldwide Net Revenue and Adjusted Operating Margin in Line with GuidanceAnnounces Strategic Review to Maximize Shareholder ValueCompany Provides Full Year 2024 Outlook RICHARDSON, Texas, March 13, 2024 (GLOBE NEWSWIRE) -- Fossil Group, Inc. (NASDAQ: FOSL) today announced financial results for the fourth quarter and fiscal year ended December 30, 2023. Separately, the Company also announced today that Kosta N. Kartsotis has stepped down as Chief Executive Officer and Jeffrey N. Boyer, Chief Operating Officer, has been appointed Interim CEO, effective immediately. “During 2023, we made solid progress under our Transform and Grow (TAG) Plan, enabling us to exit the smartwatch category, close underperforming retail stores, manage down inventories, and capture $125 million of annualized cost savings, ” said Jeffrey Boyer, Interim Chief Executive Officer. “We entered 2024 with a leaner cost structure, healthier inventory levels and sufficient liquidity. Importantly, we remain on track with our TAG Plan and expect to achieve our previously announced target of $300 million of annualized operating income benefits by the end of 2025. Additionally, we are taking deliberate actions to improve our financial performance, strengthen our balance sheet, and conduct a strategic review of our current business model and capital structure with the goal of maximizing shareholder value.” Fourth Quarter and Full Year Summary Fourth quarter worldwide net sales decreased to $421 million, down 16% on a reported basis and 17% in constant currency, with sales declines across all regions and all channels.Full year worldwide net sales decreased to $1,412 million, down 16% on both a reported and constant currency basis, with sales declines across all regions and all channels.Full year operating loss was $143 million compared to operating loss of $1 million a year ago. Adjusted operating loss was $92 million, or 6.5% of net sales, compared to adjusted operating income of $7 million, or 0.4% of net sales, last year.Full year diluted loss per share was $3.00 and adjusted loss per share was $2.24, as compared to diluted loss per share of $0.85 and adjusted loss per share of $0.71 in the prior year.As of December 30, 2023, cash and cash equivalents of $117 million. Fourth Quarter 2023 Operating Results Amounts referred to as “adjusted” as well as “constant currenc...