Slide 1: [LOGO]
[LOGO]
Slide 2: Company Highlights
Company Highlights • Global accessory leader • Compelling brands with worldwide appeal • High-margin businesses • Proprietary brand strength • Significant opportunities for growth • Growing and profitable retail segment • Consistent track record of growth • Strong balance sheet and cash flow
Slide 3: Net Sales Growth
2003 2004 2005 2006 2007 Net Sales Growth ($ in Millions) $1,214 $1,433 $1,043 $957 $781 Historical Growth Net Sales 22.5% 16.4% 18.0% 9.0%
Slide 4: Global Diversity
Global Diversity US International 54% US 46%
Slide 5: Category Mix
Category Mix Watches Jewelry Leather Other Watches 67% Jewelry 8% Leather 18% Other 7%
Slide 6: Design & Execution Core Strengths
DESIGN & EXECUTION Core Strengths
Slide 7: World Class Design
World Class Design Ae Sl
Slide 8: World Class Execution
World Class Execution
Slide 9: Watches Our Model
WATCHES Our Model
Slide 10: [LOGO]
[LOGO]
Slide 11: Zodiac
# ZODIAC
Slide 12: Emporio Armani
> EMPORIO=ARMANI EMPORIO=ARMANI
Slide 13: Licensed brands
A\Y MARC JACOBS NY BURBERRY DKNY pieseEL MUCGHAGS
Slide 14: Watches Accessories
WATCHES ACCESSORIES
Slide 15: [LOGO]
[LOGO]
Slide 16: [LOGO]
[LOGO]
Slide 17: Jewelry Watches Accessories
JEWELRY WATCHES ACCESSORIES
Slide 18: [LOGO]
[LOGO]
Slide 19: Fossil Direct Jewelry Watches Accessories
FOSSIL DIRECT JEWELRY WATCHES ACCESSORIES
Slide 20: Growth Opportunities
Growth Opportunities • Fossil Brand • Direct Business • International Platform
Slide 21: Brand Repositioning
Brand Repositioning |
Slide 22: Fossil Direct Stores, Web, Catalog
• Direct distribution for core businesses • Strong financial metrics • Excellent use of capital • Global footprint – early mover advantage • Accelerates global brand communication Fossil Direct Stores – Web - Catalog
Slide 23: Historical Store Growth by Concept
2004 2005 2006 2007 Proj 2008 Accessory Apparel Outlet Mulit-brand Fossil Retail Historical Store Growth by Concept 136 171 198 244 325 Total Doors
Slide 24: Global Accessory Stores Proj. 2008
Global Accessory Stores Proj. 2008 North America 48% Europe 34% Asia 18%
Slide 25: Fossil Retail
• Strong 4 wall metrics • High ROI • Positive Comps • Scalable Fossil Retail Accessory Stores Non-Watch 42% Watch 58%
Slide 26: Heidelberg, Germany
Heidelberg, Germany Opened 11/7/08
Slide 27: Paris, France
Paris, France Opened 11/14/08
Slide 28: Penang, Malaysia
Penang, Malaysia Opened 11/15/08
Slide 29: Hamburg, Germany
Hamburg, Germany Opened 11/21/08
Slide 30: Ecommerce – U.S.
700 Million Impressions 1.8 Million Visitors / Month 1 Million Opt-In Email Addresses $25 Million Annual Sales WWW.FOSSIL.COM Ecommerce – U.S.
Slide 31: Ecommerce – International
German Website Launch in Sept 2007 200K Visitors / Month $4 Million in Annual Sales Australia, UK & Singapore Sites in 2008 WWW. FOSSIL.DE Ecommerce – International
Slide 32: Catalog
Catalog 7.2 Million Annual Circulation and Growing 877K Name House File 7 Catalog Mailings in ‘08
Slide 33: Global Presence
Global Presence Fossil-owned Markets 3rd Party Distribution Partners
Slide 34: Sales Mix 2007
Sales Mix 2007 (in millions) $ % Mix Europe Wholesale $ 483.9 33.8% Other Int’l. Wholesale 233.2 16.2 Total Int’l. Wholesale 717.1 50.0 Domestic Wholesale 460.6 32.2 Direct to Consumer 255.3 17.8 Total $1,433.0 100.0%
Slide 35: Shop-in-Shop: London, UK
Shop-in-Shop: London, UK
Slide 36: Shop-in-Shop: Belfast, Northern Ireland
Shop-in-Shop: Belfast, Northern Ireland
Slide 37: Shop-in-Shop: Malaysia
te Shop-in-Shop: Malaysia
Slide 38: Shop-in-Shop: Singapore
Shop-in-Shop: Singapore
Slide 39: Financial Summary
Financial Summary
Slide 40: Historical Growth Net Sales
2003 2004 2005 2006 2007 US Wholesale Intl Wholesale Direct Net Sales Growth ($ in Millions) $1,214 $1,433 $1,043 $957 $781 16.7 17.4 15.7 18.9 5 Year 19.3 19.4 19.1 19.5 10 Year 2007 2006 2005 2004 CAGR % Increase Over Prior Year 15.6 27.6 20.0 38.5 Direct 30.3 20.1 6.2 26.9 Intl Wholesale 4.0 7.5
Slide 41: Gross Profit and Operating Income
$398 $503 $535 $609 $742 2003 2004 2005 2006 2007 $106 $131 $109 $123 $186 2003 2004 2005 2006 2007 Historical Growth Gross Profit and Operating Income Gross Profit ($ in Millions) Operating Income ($ in Millions) 51.8 50.2 51.3 52.5 51.0 2007 2006 2005 2004 2003 Gross Profit Margin % 2007 2006 2005
Slide 42: Current Performance YTD Q3
Current Performance YTD Q3 Net Sales ($ in Millions) 15.4% Gross Profit ($ in Millions) Op Income ($ in Millions) 23.3% 42.0% $1.00 $1.33 Diluted EPS 50.9% 10.7% 54.4% 13.2% Gross Margin Operating Margin YTD Q3 07 YTD Q3 08 2007 $969.9 2008 $1,119.1 2007 $104.1 2008 $147.8 2007 $493.6 2008 $608.8
Slide 43: Selected Financial Information
41 26 768 4 332 229 125 Q3 2008 24 23 708 12 266 201 196 Q3 2007 40 33 $1.88 132 772 10 248 227 268 FY 2007 51 Capital expenditures 32 Depreciation and amortization expense $2.16 Cash flow / share 148 Cash flow from operations 602 Stockholders’ equity 11 Short-term debt 228 Inventories - net 155 Acc
Slide 44: Thanks for Stopping By
Thanks for Stopping By