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 2003-2007
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 International 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
Slide 8: World Class Execution
World Class Execution
Slide 9: Watches Our Model
WATCHES Our Model
Slide 10: naturally
naturally Moc "<a hat Vidige are you? FOSSIL a,
Slide 11: Zodiac
@zopiac
Slide 12: [LOGO]
[LOGO]
Slide 13: Licensed brands
aA MARC JACOBS DKNY BURBERRY DONNA KARAN NEWYORK DIESEL MICHAEL MICHAEL KORS
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: Long-Term Targets
Long-Term Targets • Add more than $1 Billion in sales (existing businesses only) • Improve operating margin to 16.9% from 13% in fiscal 2007 • Achieve a CAGR in EPS of 18%
Slide 21: Major Opportunities
3 Major Opportunities • Fossil Brand • Direct Business • International Platform
Slide 22: Brand Repositioning
Brand Repositioning
Slide 23: Fossil Brand Sales 2007 to 2012
2007 2012 $ 735 Million $ 1.4 Billion Fossil Brand Sales
Slide 24: Fossil Direct
• 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 25: Historical Store Growth by Concept
2003 2004 2005 2006 2007 Accessory Apparel Outlet Fossil Retail Historical Store Growth by Concept 119 136 171 198 244 Total Doors
Slide 26: Global Store Count 2007 and 2012
Global Store Count 700 2012 244 2007
Slide 27: Fossil Retail Accessory Stores
• Strong 4 wall metrics • High ROI • Positive Comps • Scalable Fossil Retail Accessory Stores Non-Watch 42% Watch 58%
Slide 28: Cologne Germany
Cologne Germany
Slide 29: Kinta City Malaysia
Kinta City Malaysia – 7/18/08
Slide 30: Beijing SLT China
Beijing SLT China — 7/19/08 airossii| ay
Slide 31: Utama, Malaysia
Utama, Malaysia — 7/26/08 FOSSIL
Slide 32: Madrid Islazul Spain
Madrid Islazul Spain – 8/8/08
Slide 33: Metropolis British Columbia
Metropolis British Columbia – 8/11/08
Slide 34: Briarwood Michigan
Briarwood Michigan – 8/11/08
Slide 35: Toronto Eaton Ontario
Toronto Eaton Ontario – 8/11/08
Slide 36: National Harbor Baltimore
National Harbor Baltimore – 8/18/08
Slide 37: Tucson, Arizona
Tucson, Arizona — 8/18/08 FOSSIL
Slide 38: Fossil.com Web Traffic
+700 Million Impressions +1.8 Million Visitors / Month +1.0 Million Opt-In Email Addresses FOSSIL.COM WWW.
Slide 39: German Website Launch Fossil.de
German website launch: 9/12/07 200K Visitors / Month YTD net sales: $1.741M FOSSIL.DE WWW.
Slide 40: Catalogs
CATALOGS 7.2 Million Annual Circulation and Growing 877K Name House File 7 catalog mailings in ‘08
Slide 41: Global Presence
Global Presence Fossil-owned markets 3rd Party Distribution Partners
Slide 42: 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 $1,433.0 100.0%
Slide 43: Shop-in-Shop: London
Shop-in-Shop: London, U what Vidige are you?
Slide 44: Shop-in-Shop: Belfast, Northern Ireland
Shop-in-Shop: Belfast, Northern Ireland
Slide 45: Shop-in-Shop: Malaysia
Shop-in-Shop: Malaysia
Slide 46: Shop-in-Shop: Singapore
Shop-in-Shop: Singapore
Slide 47: Financial Summary
Financial Summary
Slide 48: Historical Growth Net Sales
2003 2004 2005 2006 2007 US Wholesale Intl Wholesale Direct Net Sales Growth ($ 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 49: Historical Growth 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 50: FY 2007 Performance Diluted EPS Proforma
FY 2007 Performance Diluted E.P.S – Proforma $1.78 $0.12 - (0.09) $1.75 2007 $1.08 Adjusted Diluted EPS - Option review costs ($0.05) - Q1 ’06 Additional week Normalize tax rate Proforma Adjustments: $1.13 Reported EPS 2006
Slide 51: Current Performance YTD Q2 2008
Current Performance YTD Q2 2008 Net Sales ($ in Millions) 16.0% Gross Profit ($ in Millions) Op Income ($ in Millions) 25.4% 51 .0% $0.57 $0.80 Diluted EPS 50.2% 9.1% 54.2% 11.9% Gross Margin Operating Margin YTD Q2 07 YTD Q2 08 2007 $611.3 2008 $709.4 2007 $55.7 2008 $84.1 2007 $306.6 2008 $384.6
Slide 52: Selected Financial Information
24 18 nm nm 780 4 285 176 212 Q2 2008 12 16 nm nm 650 10 238 151 178 Q2 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 -
Slide 53: Thanks for Stopping By
Thanks for Stopping By ) {<i FOSSIL EE what Vielage are you?