Fossil Group, Inc. Reports Second Quarter 2020 Financial Results

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[{"type":"text","content":"RICHARDSON, Texas, Aug. 12, 2020 (GLOBE NEWSWIRE) -- Fossil Group, Inc. (NASDAQ: FOSL) today announced financial results for the second quarter ended July 4, 2020.\n Second Quarter Summary Worldwide net sales of $259 million decreased 48% on a reported basis and 47% in constant currency. The year-over-year decline primarily reflects COVID-19 related impacts on a global basis, including retail and wholesale closures, throughout much of the quarter.On a constant currency basis, sales from the Company's owned e-commerce websites increased 138% and third party marketplace e-commerce sales increased 20% compared to prior year.Gross margin of 54.3%, representing 140 basis points of expansion compared to the second quarter of 2019.The Company reduced operating expenses by $86 million, or 33%, on a year-over-year basis, due to both its New World Fossil 2.0 - Transform to Grow program (“NWF 2.0”) and immediate cost reduction efforts.Operating loss of $37 million compared to operating income of $2 million a year ago, primarily due to COVID-19 impacts on sales.Cash and cash equivalents of $278 million, and total debt of $269 million as of July 4, 2020. “Our second quarter results were impacted by broad-based global store closures due to COVID-19 throughout much of the quarter,” stated Kosta Kartsotis, Chairman and CEO. “Our teams have responded quickly and executed well in the face of significant COVID-19 impacts. In navigating this challenging environment, we have taken aggressive actions to increase liquidity and reduce costs, and further engaged with our consumers through digital initiatives and product innovation. Importantly, we are maintaining our focus on the strategic priorities we outlined at the beginning of 2020, including the acceleration of our cost reduction actions through NWF 2.0 and the expansion of our digital capabilities to help drive continued growth in the e-commerce channel.” COVID-19 Update The Company is continuing to closely manage liquidity, expenses and inventory to navigate macro uncertainty and COVID-19 impacts. During the second quarter, the Company: Amended its credit facility, resulting in increased covenant flexibility;Reduced operating expenses across payroll, marketing, travel, professional fees and contract labor versus prior year;Closely managed working capital by reducing inventory receipts; andReduce...

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