Business
Fossil Group, Inc. Reports Second Quarter 2024 Financial Results
Continued Operational and Financial Progress under TAG Plan Maintains Full Year 2024 Outlook RICHARDSON, Texas, Aug. 08, 2024 (GLOBE NEWSWIRE) -- Fossil
About this update from Fossil Group, Inc.
[{"type":"text","content":"Continued Operational and Financial Progress under TAG Plan Maintains Full Year 2024 Outlook RICHARDSON, Texas, Aug. 08, 2024 (GLOBE NEWSWIRE) -- Fossil Group, Inc. (NASDAQ: FOSL) today announced financial results for the fiscal second quarter ended June 29, 2024. Second Quarter Summary Second quarter worldwide net sales decreased to $260 million, down 19% on a reported basis and 18% in constant currency, which includes five points of negative impact related to the Company’s strategic actions to exit the smartwatch category and optimize its retail store portfolio.Gross margins expanded 390 basis points to 52.6%, primarily reflecting progress under the Company’s Transform and Grow (\"TAG\") Plan.Selling, general and administrative (“SG&A”) expenses of $154 million were down 18% versus last year, primarily due to lower compensation costs as a result of efficiencies from the Company’s TAG Plan.Second quarter operating loss of $34 million compared to operating loss of $35 million a year ago. Adjusted operating loss of $17 million compared to adjusted operating loss of $28 million last year.Inventory totaled $202 million, a decrease of 38% versus a year ago; the Company had total liquidity of $156 million at quarter end, including cash and cash equivalents of $105 million and $51 million of availability under its revolving credit facility. “Our second quarter results were in line with our expectations and reflect continued progress under our TAG Plan,” said Jeffrey Boyer, Interim CEO. \"Strong execution of our initiatives resulted in gross margin expansion, cost reduction and adjusted operating margin improvement in the second quarter. Our teams remain focused on further advancing our TAG Plan, while progressing on our actions to stabilize the business, strengthen the balance sheet and conduct a strategic review of our business model and capital structure.” Second Quarter 2024 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 their closest reported GAAP measures are included at the end of this press release. Net sales totaled $260.0 million, a decrease of 19.3% on a reported basis and 18.5% in constant currency compared to $322.0 million in the second quarter of fiscal 2023. The sales decrease was largely driven b...