Fossil Group, Inc. · NASDAQ:FOSL

Fossil — Investor Presentation (August 2023)

15 slides from Fossil's investor presentation, Aug 9, 2023

  1. Slide 1: Fossil Group: Transform and Grow, August 2023

    AUGUST 2023 Fossil Group © ~"™ Transform and.Grow~

  2. Slide 2: Disclaimer and forward-looking statements

    IN GENERAL. This disclaimer applies to this document and any verbal or written comments of any person presenting it. This document, taken together with any such verbal or written comments (if any), is referred to herein as the “Presentation.” FORWARD-LOOKING STATEMENTS. This Presentation contains “f

  3. Slide 3: Fossil Group has a strong foundation

    Fossil Group has a strong foundation FOSSIL “Z? 35+ year Desirable Balanced portfolio heritage brands across multiple categories Diversified Digital first Product distribution & “Go to mindset and centric culture Market” models capabilities FOSSIL

  4. Slide 4: The headwinds in our business contribute to our need to Transform and Grow

    The headwinds in our business contribute to our need to Transform and Grow e Slow growth in traditional watch market <$500 ¢ Significant channel shifts away from traditional wholesale e Declining Smartwatch revenue e¢ More recent inflationary pressures, impacting demand and cost structure e Gradual

  5. Slide 5: Goal to return to 10% adjusted operating margin

    With our Transform and Grow Program, our goal is to return to 10% adjusted operating margin Fossil Group Financial Results, 2005-2022, $M Adjusted Operating © margin 19% Adjusted operatin; | | eee : income ($M) $109M 2005 2010 2015 2021 2022 In previous years, we consistently delivered 10%+ Adjusted

  6. Slide 6: To recapture growth, we are focused on our most compelling opportunities

    To recapture growth, we are focused on our most compelling opportunities Revitalize the Maximize our licensed Expand our premium Fossil brand brand portfolio for watch offerings watches and jewelry Underpinned by Digital, Marketing and Tech Capabilities FOSSIL G

  7. Slide 7: Expanded Transform and Grow program to reshape our business model

    We have expanded our Transform and Grow program to reshape our business model and invest in our growth strategies Fossil Group is undertaking a comprehensive, 36-month FOSSIL transformation program called GROUP We've identified Transform and Grow $300M Operating Income Benefits We will partner with

  8. Slide 8: Our efforts will be guided by key principles

    Our efforts will be guided by 5 key principles =@) © Lead witha Operate Focus on digital-first with speed shareholder value approach & urgency creation Preserve brand Develop an agile ethos & heritage operating model FOSSIL

  9. Slide 9: Transform and Grow major components

    Transform and Grow has 3 major components designed to capture operating income improvement and enable re-investment into our growth strategies Drive Sales Productivity FOssiL Reengineer End-to-End Operations Streamline Overhead and Improve Capital Efficiency

  10. Slide 10: Drive Sales Productivity

    (1) Drive Sales Productivity - Redesign pricing and promotion architecture for stronger value realization - Optimize product assortment & categories - Invest more behind fewer, higher impact stories - Enhance store productivity

  11. Slide 11: Reengineer End-to-End Operations

    ) Reengineer End-to-End Operations - Deploy integrated business planning to improve inventory productivity - Redesign supply chain and network - Improve sourcing practices to drive COGS savings (including design-to-value) - Rationalize stores FOSSIL

  12. Slide 12: Streamline Overhead Cost and Improve Capital Efficiency

    Streamline Overhead Cost and Improve Capital Efficiency - Streamline roles and responsibilities - Embed stringent cost management - Transform org and operating model - Drive efficiency with Information Technology

  13. Slide 13: What you will see going forward

    FOSSIL What you will see going forward Updates on overall Transform and Grow program shape and scope Regular value tracking on key initiatives relative to financial and operational targets

  14. Slide 14: Appendix

    FOssiL APPENDIX 14

  15. Slide 15: Adjusted operating income and margin non-GAAP measures

    Adjusted operating income and Adjusted operating margin are non-GAAP financial measures. We define Adjusted operating income as operating income (loss) before impairment expense and restructuring expense. Adjusted operating margin is defined as Adjusted operating income divided by net sales. We have

Fossil Group — Investor Presentation (August 2023) on 6ix