Fossil Group, Inc. Reports Second Quarter 2021 Financial Results; Raises Full Year Outlook

About this update from Fossil Group, Inc.

[{"type":"text","content":"RICHARDSON, Texas, Aug. 11, 2021 (GLOBE NEWSWIRE) -- Fossil Group, Inc. (NASDAQ: FOSL) today announced financial results for the second quarter ended July 3, 2021. Second Quarter Fiscal 2021 Summary Worldwide net sales of $411 million increased 59%, or 51% on a constant currency basis. Net sales performance was strong in all three regions, led by a 64% increase in the Americas on a constant currency basis and continued momentum in mainland China, which recorded net sales growth of 38% on a constant currency basis. Net sales through all digital channels grew 10% and 82%, on a constant currency basis, compared to the second quarter of fiscal 2020 and 2019, respectively, and represented 41% of worldwide net sales.Operating income of $14 million compared to an operating loss of $37 million a year ago. Total liquidity of $294 million, consisting of cash and cash equivalents of $252 million and $42 million of borrowing availability, and total debt of $178 million, each as of July 3, 2021. “Our strong second quarter performance reflects solid operational execution across all channels and regions in a challenging consumer environment,” said Kosta Kartsotis, Chairman and CEO. “We are encouraged by improving consumer demand in our largest markets and our core category of traditional watches. Based on our strong year-to-date performance and strengthening demand signals going into the second half of the year, we are raising our 2021 outlook. Looking ahead we are pleased that our digital initiatives, brand-building efforts and ongoing transformation activities are positioning the business to deliver sustained sales and earnings growth over the long-term.” Second Quarter 2021 Operating Results Amounts referred to as “Adjusted” as well as “constant currency” are Non-GAAP measures. Reconciliations of these Non-GAAP measures to their closest GAAP reported measure is included at the end of this press release. Net sales totaled $410.9 million, an increase of 59% on a reported basis and 51% in constant currency compared to $259.0 million in the second quarter of fiscal 2020. Net sales, in constant currency, grew in all regions with the Americas at 64%, Europe at 44% and Asia at 41% versus the same quarter last year. Additionally, total digital sales grew 10%, in constant currency, in the second quarter and represented 41% of worldwide net sales. Gr...

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