Fossil Group, Inc. Reports Third Quarter 2022 Financial Results

About this update from Fossil Group, Inc.

[{"type":"text","content":"Provides Updated Full Year 2022 Outlook\nRICHARDSON, Texas, Nov. 09, 2022 (GLOBE NEWSWIRE) -- Fossil Group, Inc. (NASDAQ: FOSL) today announced financial results for the third quarter ended October 1, 2022. Third Quarter Summary Third quarter worldwide net sales totaled $436 million, decreasing 11% on a reported basis and 5% in constant currency. From a regional lens, Americas and Asia sales declined while Europe was flat on a constant currency basis.Direct to consumer net sales increased 5% in constant currency, led by growth in retail store sales and owned websites.FOSSIL brand sales grew in leathers, traditional watches and jewelry, offset by declines in smartwatches, resulting in a total sales decline of 2% in constant currency.Operating income of $22 million compared to $48 million a year ago. Adjusted operating income of $23 million compared to adjusted operating income of $54 million last year. As of October 1, 2022, cash and cash equivalents of $163 million. “Our third quarter results were in line with our expectations against the backdrop of continued macro headwinds globally,” said Kosta Kartsotis, Chief Executive Officer. “The trends we saw in the second quarter have largely persisted into the second half of the year. These include ongoing COVID-19 restrictions in mainland China, elevated inventory levels among our wholesale partners and global inflation, which is affecting consumer sentiment. Additionally, the record strength of the U.S. dollar reduced our net sales and operating margins in the third quarter.” “Our teams executed well in a dynamic environment and have recently completed important milestones on our 2022 digital roadmap in time to support holiday selling. Entering the holiday selling season, we are delivering excitement through product innovation across watches, jewelry and leathers, including our recently launched Fossil Heritage Collection, which celebrates our iconic designs, as well as our new limited-edition Harry Potter x Fossil collaboration. Recognizing that the macro headwinds will persist into 2023, we are sharpening our focus on capturing efficiencies in our business model, while driving growth through our digital roadmap and updated FOSSIL brand strategy.” Third Quarter 2022 Operating Results Amounts referred to as “adjusted” as well as “constant currency” are non-GAAP financial measures. R...

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