Business
Fossil Group, Inc. Reports Fourth Quarter and Full Year 2022 Results
Outlines Transform and Grow Strategy; Provides 2023 Outlook RICHARDSON, Texas, March 08, 2023 (GLOBE NEWSWIRE) -- Fossil Group, Inc. (NASDAQ: FOSL) today
About this update from Fossil Group, Inc.
[{"type":"text","content":"Outlines Transform and Grow Strategy; Provides 2023 Outlook\nRICHARDSON, Texas, March 08, 2023 (GLOBE NEWSWIRE) -- Fossil Group, Inc. (NASDAQ: FOSL) today announced financial results for the fourth quarter and fiscal year ended December 31, 2022. Fourth Quarter and Full Year Summary Fourth quarter worldwide net sales decreased to $499 million, down 17% on a reported basis and 12% in constant currency with sales declines across all regions. Growth in the Company’s direct to consumer channel was offset by declines in wholesale.Full year worldwide net sales decreased to $1,682 million, down 10% on a reported basis and 5% in constant currency with wholesale channel sales down 11% in constant currency and direct to consumer channel sales up 5%, including comparable retail sales growth of 15%.Full year operating loss was $1 million compared to operating income of $93 million a year ago. Adjusted operating income decreased to $7 million, or 0.4% of net sales, compared to an adjusted operating income of $124 million, or 6.6% of net sales, last year.Full year diluted loss per share was $0.85 and adjusted loss per share was $0.71, as compared to diluted earnings per share of $0.48 and adjusted earnings per share of $1.12 in the prior year.As of December 31, 2022, cash and cash equivalents of $199 million. “Our teams navigated a dynamic macro environment in 2022,” said Kosta Kartsotis, Chairman and CEO. “Despite ongoing inflationary pressures and other global headwinds, we made solid progress in our core initiatives to advance our digital roadmap and build FOSSIL brand heat. The year came to a challenging close – against the backdrop of a retail landscape marked by elevated wholesale inventories and increased promotional activity, strength in our direct to consumer business was more than offset by soft topline trends in our wholesale channel globally.” “While we expect external market dynamics to remain fluid, we are committed to improving our financial performance through our Transform and Grow Plan, designed to reduce our operating expenses, improve operating margin, enhance operational effectiveness, and advance our path to profitable growth.” Fourth Quarter 2022 Operating Results Amounts referred to as “adjusted” as well as “constant currency” are non-GAAP financial measures. Reconciliations of these non-GAAP financial measures to thei...