Slide 1: Fossil: What vintage are you?
Slide 2: Safe Harbor Statement
Safe Harbor Statement This presentation contains certain statements that are not historical facts, which are “forward-looking information” within the meaning of the Private Securities Litigation Reform Act of 1955 and involve a number of risks and uncertainties. The actual results of the future even
Slide 3: Investment Highlights
Investment Highlights - Leading supplier to department stores 9 for accessories MICHELE - Global watch leader . - Competitive advantages - worldwide design and distribution | §zoniac - High margin businesses - Strong cash flow
Slide 4: Company Overview
Company Overview am. * Fiscal 2005 revenue exceeding $1 billion « Global watch advantages DKNY Infrastructure i DONNAKARAN NEH YORK —Design —Sourcing — Distribution (Market ownership) Portfolio approach maximizes growth potential & leverage MICHAEL * Complimentary jewelry lines MICHAEL KORS °B di i
Slide 5: Revenue Breakdown
Revenue Breakdown 2005 Total Revenue by Geography US Wholesale 41% Europe Retail 15% Asia 8% 2005 Total Revenue by Product Category watches 67.1% Other 1.190 [Apparel 2.20: Sun 3.790 Jewelry 5.8% Leather 20.19% WHAT VINTAGE ARE You?
Slide 6: Sales Channels
Sales Channels Geographic More than 90 countries worldwide Wholesale Luxury to mass, specialty retail, jewelry and sporting goods ° zp ® & 2 177 company-owned stores ° g = o oO 8 Web and catalog
Slide 7: Watch Industry Overview
Watch Industry Overview ¢ Global watch industry estimated at $20 to $30 billion —U.S. watch market estimated at one-third of the world — International watch market estimated at two-thirds * Major European markets include UK, Germany, France and Italy * Major Asian markets include Japan, Hong Kong an
Slide 8: Watches
Watches Leader in Fashion watch category - growing presence in luxury and mass Advantages - Recognized & sustainable global brands - Global distribution network - High margin, adaptable portfolio - Stabilize Fossil domestic watch sales - Increased innovation - Increase inventory turns - Capitalize o
Slide 9: Jewelry
Jewelry New business initiative with significant growth potential Advantages - Scalability - High margins - Leverage distribution 4 ee - Expand markets - Increase penetration in existing markets - Licensing opportunities
Slide 10: Accessories
Accessories Handbags, Small Leather Goods, Belts & Sunglasses Advantages - 2005 sales growth of 20%; Q1-06 up 25% - Industry leader in department and mid-tier stores - Design talent - Brand building c aoe - Broaden product offerings and price points - Leverage design capabilities - Expand internatio
Slide 11: Retail
Retail is naneeninnts - Domestic 140 and 37 international - Opportunity to utilize cash flow generating strong ROI Advantages - Test and react - Build and enforce brand image - Direct interface with consumer - Limits wholesale dependence - Outlets - profitable way to close out styles Key initiatives
Slide 12: Retail Footprint
q Retail Footprint (total of 177 at the end Q1 2006) 74 70 66 Outlet Us Full Price US Full Price Europe Full Price Asia__Full Price Canada F
Slide 13: 2005 Milestones/ Accomplishments
2005 Milestones/ Accomplishments + Exceeded $1 billion in net sales + Domestic accessories business growth of 20% + Adidas license, Diesel jewelry license, launch of Mark Jacobs | + Initiated Fossil catalog ] . { + Acquisition of Scandinavia/Taiwan distribution $75 million expended to repurchase 3.6
Slide 14: First Quarter 2006
First Quarter 2006 + Exceeded sales and earnings expectations + Q1 net sales up 13.6% to $264 million + Q1 diluted EPS of $0.14 vs $0.12 consensus s + Realized rebound in international watch sales © / * Strong contributions from accessories, retail and jewelry + Continued challenges in Fossil domest
Slide 15: Margin Expansion Initiatives
Margin Expansion Initiatives Leverage investments — Distribution an — SAP — New product categories Increase operating leverage Increase international and retail store sales Grow revenue contributions from new product category — Jewelry — Swiss watches — Mass market watches — Newli WHAT. VINTAGE ARE
Slide 16: Strategic Initiatives
Strategic Initiatives Watches worldwide - Stabilize Fossil domestically, expand internationally — Increase portfolio through acquisitions/licensing — Focus ondeveloping markets = / la Accessories - Grow market share in US — Expand internationally Expand jewelry offering Retail stores - US & internat
Slide 17: Investment Highlights
Investment Highlights Global watch leader Leading supplier to department stores for accessories Competitive advantages — worldwide design and distribution High margin businesses
Slide 18: Searchable text section of graphics shown above
Searchable text section of graphics shown above [LOGO] [GRAPHIC] Safe Harbor Statement This presentation contains certain statements that are not historical facts, which are “forward-looking information” within the meaning of the Private Securities Litigation Reform Act of 1955 and involve a number