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

About this update from Fossil Group, Inc.

[{"type":"text","content":"RICHARDSON, Texas, Nov. 10, 2021 (GLOBE NEWSWIRE) -- Fossil Group, Inc. (NASDAQ: FOSL) today announced financial results for the third quarter ended October 2, 2021. Third Quarter Fiscal 2021 Summary Worldwide net sales of $492 million increased 13%, or 11% on a constant currency basis, reflecting growth across all three regions. Net sales through all digital channels grew 28% and 97%, on a constant currency basis, compared to the third quarter of fiscal 2020 and 2019, respectively, and represented 40% of worldwide net sales. Operating income increased to $48 million, or 10% of sales, compared to $18 million, or 4% of sales a year ago. Adjusted operating income increased significantly to $54 million compared to $28 million in the third quarter of 2020, while adjusted operating margin expanded to 11% from 6%. Total liquidity of $305 million, consisting of cash and cash equivalents of $182 million and $123 million of borrowing availability, and total debt of $139 million, each as of October 2, 2021. On November 3, 2021, Fossil completed a $150 million senior notes offering, further strengthening the Company’s financial condition. “We are pleased to report another quarter of strong financial performance,” said Kosta Kartsotis, Chairman and CEO. “Top line growth, solid gross margins and ongoing expense management drove adjusted operating margins of 11% in the third quarter. A continuing focus on our four strategic priorities is fueling broad-based sales growth, led by digital channels. We are proud of our teams for their hard work and dedication that has translated to strong top line performance, while also delivering sharp execution on inventory management and expense control fundamentals.” “We are entering the holiday season with a healthy inventory position and strong consumer demand within our largest markets and core categories. As we look ahead to 2022, we feel confident that the business is well-positioned from both an operational and financial perspective. We have the talent, tools and financial flexibility to continue to drive growth and build shareholder value over the long-term.” Third 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 re...

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