Fossil Group, Inc. (FOSL) Bundle
A Brief History of Fossil Group, Inc.
Corporate Overview
Fossil Group, Inc. is a global design, marketing, and distribution company that specializes in consumer fashion accessories, including watches, handbags, and jewelry. As of September 28, 2024, Fossil operates through multiple segments, primarily focusing on the Americas, Europe, and Asia.
Financial Performance
For the 39 weeks ended September 28, 2024, Fossil reported net sales of $802.7 million, down from $991.1 million for the same period in 2023. The company's gross profit for the same period was $412.6 million, compared to $479.0 million in the prior year.
Operating loss for the 39 weeks ended September 28, 2024, was $87.7 million, with an operating margin of (10.9)%, compared to an operating loss of $119.0 million and an operating margin of (12.0)% for the same period in 2023.
Net loss attributable to Fossil Group, Inc. for the year-to-date period was $95.1 million, or $1.80 per diluted share, compared to a net loss of $128.9 million, or $2.47 per diluted share in the prior year.
Segment Performance
Operating income (loss) by segment for the 39 weeks ended September 28, 2024, is summarized as follows:
| Segment | Operating Income (Loss) - 2024 (in millions) | Operating Income (Loss) - 2023 (in millions) | Change (in millions) |
|---|---|---|---|
| Americas | $45.3 | $61.8 | $(16.5) |
| Europe | $40.7 | $19.6 | $21.1 |
| Asia | $28.2 | $30.6 | $(2.4) |
| Corporate | $(201.9) | $(231.0) | $29.1 |
| Total | $(87.7) | $(119.0) | $31.3 |
Restructuring Initiatives
In fiscal year 2023, Fossil announced its Transform and Grow strategy (TAG) aimed at reducing operating costs and improving margins. The company estimates that TAG will generate approximately $300 million in annualized operating benefits by the end of 2025, with total charges of $100 million to $120 million over the duration of the plan.
Liquidity and Capital Resources
As of September 28, 2024, Fossil had total liabilities of $647.0 million and stockholders' equity of $161.9 million. The company had $150.0 million outstanding under its Notes and $27.2 million under its Revolving Facility. The available borrowing capacity under the Revolving Facility was $23.8 million.
Cash Flow and Investments
Fossil's cash, cash equivalents, and restricted cash totaled $110.7 million as of September 28, 2024. The company incurred $7.8 million in interest expense related to the Notes during the year-to-date period.
Stockholders' Equity
As of September 28, 2024, the number of shares issued and outstanding was 53,154,308, with a par value of $0.01 per share. The additional paid-in capital amounted to $314.1 million, while retained earnings showed a deficit of $76.7 million.
A Who Owns Fossil Group, Inc. (FOSL)
Major Shareholders
As of 2024, the ownership of Fossil Group, Inc. is distributed among various institutional and individual shareholders. The following table summarizes the major shareholders and their respective ownership percentages:
| Shareholder | Ownership Percentage (%) | Shares Owned |
|---|---|---|
| BlackRock, Inc. | 12.3 | 6,200,000 |
| The Vanguard Group, Inc. | 8.9 | 4,500,000 |
| Dimensional Fund Advisors LP | 5.5 | 2,800,000 |
| State Street Corporation | 4.2 | 2,100,000 |
| Others (individual and institutional) | 69.1 | 34,700,000 |
Stock Performance
Fossil Group, Inc. (FOSL) has experienced fluctuations in its stock price throughout 2024. The following table details the stock performance metrics:
| Metric | Value |
|---|---|
| Current Stock Price (as of September 30, 2024) | $3.73 |
| 52-Week High | $6.45 |
| 52-Week Low | $2.87 |
| Market Capitalization | $197.1 million |
| Average Daily Volume | 245,000 shares |
Financial Overview
Fossil Group, Inc. reported significant financial metrics for the 39 weeks ended September 28, 2024. The following table illustrates key financial figures:
| Financial Metric | Value (in millions) |
|---|---|
| Net Sales | $802.7 |
| Operating Income (Loss) | $(87.7) |
| Net Income (Loss) | $(95.1) |
| Adjusted EBITDA | $(34.7) |
| Diluted Earnings (Loss) per Share | $(1.80) |
Debt Structure
As of September 2024, Fossil Group, Inc. has the following debt profile:
| Debt Type | Value (in millions) |
|---|---|
| Short-term Borrowings | $2.3 |
| Long-term Debt | $173.4 |
| Total Debt | $175.7 |
Recent Changes in Share Ownership
In 2024, there have been notable changes in share ownership, including the following:
- BlackRock increased its stake by 1.2% compared to the previous year.
- The Vanguard Group's ownership decreased by 0.5% due to market adjustments.
- Dimensional Fund Advisors LP maintained its position with no significant changes.
Conclusion on Ownership Dynamics
The ownership structure of Fossil Group, Inc. reflects a diverse array of institutional investors, with significant fluctuations in stock performance and financial health impacting shareholder dynamics in 2024.
Fossil Group, Inc. (FOSL) Mission Statement
The mission statement of Fossil Group, Inc. emphasizes their commitment to creating innovative and stylish products that inspire consumers to express their individuality. This mission is reflected in their diverse portfolio of fashion accessories, which includes watches, jewelry, handbags, and leather goods, aimed at a broad consumer base across various price points.
Financial Overview
As of 2024, Fossil Group has faced significant challenges impacting its financial performance. The company's net loss for the Year To Date Period was reported at $95.1 million, or $1.80 per diluted share, compared to a net loss of $128.9 million, or $2.47 per diluted share, in the previous year.
Adjusted Financial Performance
Adjusted net loss for the Year To Date Period was $68.8 million, with an adjusted loss per diluted share of $1.30, compared to an adjusted net loss of $101.0 million, or $1.94 per diluted share, in the prior year.
Net Sales by Segment
Fossil Group's consolidated net sales decreased by $188.4 million or 19.0% for the Year To Date Period compared to the previous year, with declines across all regions and product categories. The following table outlines net sales by segment:
| Segment | Net Sales (in millions) | Percentage of Total Net Sales | Percentage Change |
|---|---|---|---|
| Americas | $351.0 | 43.7% | (19.7%) |
| Europe | $250.6 | 31.2% | (16.9%) |
| Asia | $199.7 | 24.9% | (19.2%) |
| Corporate | $1.4 | 0.2% | (72.0%) |
| Total | $802.7 | 100.0% | (19.0%) |
Operating Income and Margins
Operating income for the Year To Date Period was a loss of $87.7 million, with an operating margin of (10.9%). This represents an improvement from a loss of $119.0 million and an operating margin of (12.0%) in the prior year.
Cash Flow and Liquidity
At the end of the third quarter of 2024, Fossil Group had cash and cash equivalents of $106.3 million, which included $93.1 million held in banks outside the U.S. This reflects a decrease from $116.1 million at the end of the prior year quarter.
Debt Obligations
As of September 28, 2024, Fossil Group's total long-term debt was $173.4 million, down from $255.9 million at the end of the prior year quarter.
Store Count and Distribution
Fossil Group has reduced its total store count to 251 as of September 28, 2024, down from 303 stores a year prior. This includes closures across all regions, affecting their retail presence significantly.
Product Sales Breakdown
The following table details product net sales for the Year To Date Period:
| Product Category | Net Sales (in millions) | Percentage Change |
|---|---|---|
| Traditional Watches | $156.4 | (19.5%) |
| Smartwatches | $4.7 | (64.9%) |
| Leathers | $17.1 | (13.2%) |
| Jewelry | $19.3 | 14.9% |
| Total | $199.7 | (19.2%) |
Conclusion on Mission Alignment
The financial performance and strategic adjustments made by Fossil Group in 2024 reflect their mission to adapt to changing market conditions while continuing to offer innovative products that resonate with their consumer base. Their ongoing efforts to streamline operations and focus on core product offerings are indicative of this commitment.
How Fossil Group, Inc. (FOSL) Works
Company Overview
Fossil Group, Inc. is a global design, marketing, and distribution company specializing in consumer fashion accessories, including watches, jewelry, handbags, and leather goods. The company operates across various segments and distribution channels, including wholesale, retail stores, and e-commerce platforms.
Financial Performance
For the 39 weeks ended September 28, 2024, Fossil Group reported the following financial highlights:
| Metric | 2024 (39 Weeks) | 2023 (39 Weeks) | Change |
|---|---|---|---|
| Net Sales | $802.7 million | $991.1 million | $(188.4) million (-19.0%) |
| Gross Profit | $412.6 million | $479.0 million | $(66.5) million (-13.9%) |
| Operating Income (Loss) | $(87.7) million | $(119.0) million | $31.3 million (26.3%) |
| Net Income (Loss) Attributable to Fossil Group | $(95.1) million | $(128.9) million | $33.8 million (26.2%) |
| Diluted Earnings (Loss) Per Share | $(1.80) | $(2.47) | $0.67 (27.1%) |
Segment Performance
Operating income (loss) by segment for the 39 weeks ended September 28, 2024, is detailed below:
| Segment | Operating Income (Loss) ($ million) | Operating Margin (%) |
|---|---|---|
| Americas | $45.3 | 12.8% |
| Europe | $40.7 | 16.2% |
| Asia | $28.2 | 14.1% |
| Corporate | $(201.9) | N/A |
| Total | $(87.7) | (10.9)% |
Sales by Product Category
Net sales by product category for the 39 weeks ended September 28, 2024, are as follows:
| Product Category | Net Sales ($ million) | Percentage of Total Net Sales (%) |
|---|---|---|
| Traditional Watches | $603.9 | 75.2% |
| Smartwatches | $21.2 | 2.6% |
| Leathers | $78.7 | 9.8% |
| Jewelry | $81.9 | 10.2% |
| Other | $17.0 | 2.2% |
| Total | $802.7 | 100.0% |
Operating Expenses
For the 39 weeks ended September 28, 2024, Fossil Group reported total operating expenses of $500.2 million, a decrease from $598.1 million in the prior year.
| Expense Type | 2024 ($ million) | 2023 ($ million) |
|---|---|---|
| SG&A Expenses | $466.7 | $569.5 |
| Restructuring Costs | $31.6 | $27.7 |
| Other Long-Lived Asset Impairments | $1.9 | $0.8 |
Liquidity and Capital Resources
As of September 28, 2024, Fossil Group had cash and cash equivalents of $106.3 million, a decrease from $116.1 million at the end of the prior year quarter. The company also reported net working capital of $258.3 million, compared to $436.4 million in the prior year quarter.
Market Conditions and Trends
The company is navigating a challenging economic environment characterized by inflation and elevated interest rates, which have negatively impacted consumer confidence and demand for discretionary goods. Fossil Group anticipates continued cautious buying patterns among wholesale customers and will manage inventory purchases proactively to mitigate risks.
How Fossil Group, Inc. (FOSL) Makes Money
Revenue Streams
Fossil Group, Inc. generates revenue primarily through the sale of fashion accessories, including watches, leather goods, and jewelry. For the 39 weeks ended September 28, 2024, total net sales were $802.7 million, a decrease of 19.0% from $991.1 million for the same period in 2023.
| Product Category | Net Sales (2024) | Percentage of Total Net Sales | Net Sales (2023) | Percentage Change |
|---|---|---|---|---|
| Watches | $625.1 million | 77.8% | $773.7 million | (19.2%) |
| Leather Goods | $78.7 million | 9.8% | $106.6 million | (26.2%) |
| Jewelry | $81.9 million | 10.2% | $91.0 million | (10.0%) |
| Other | $17.0 million | 2.2% | $19.8 million | (14.1%) |
Performance by Geographic Region
Fossil Group's revenue is also segmented by geographic region. For the 39 weeks ended September 28, 2024, the breakdown is as follows:
| Region | Net Sales (2024) | Percentage of Total Net Sales | Net Sales (2023) | Percentage Change |
|---|---|---|---|---|
| Americas | $351.0 million | 43.7% | $437.2 million | (19.7%) |
| Europe | $250.6 million | 31.2% | $301.6 million | (16.9%) |
| Asia | $199.7 million | 24.9% | $247.3 million | (19.2%) |
Sales Distribution Channels
The company distributes its products through several channels:
- Wholesale to retailers
- Direct-to-consumer through retail stores
- Online sales via e-commerce platforms
- Third-party distributors in regions without a direct presence
Product Categories Performance
Within the watches category, traditional watches accounted for the majority of sales, while smartwatch sales significantly declined following the company's exit from that market segment. For the 39 weeks ended September 28, 2024, sales figures were as follows:
| Watch Type | Net Sales (2024) | Percentage of Total Watch Sales | Net Sales (2023) | Percentage Change |
|---|---|---|---|---|
| Traditional Watches | $603.9 million | 75.2% | $714.2 million | (15.4%) |
| Smartwatches | $21.2 million | 2.6% | $59.5 million | (64.3%) |
Operating Income and Margins
Fossil Group reported an operating loss of $87.7 million for the 39 weeks ended September 28, 2024, compared to a loss of $119.0 million for the same period in 2023. The operating margin improved to (10.9)% from (12.0)% in the prior year.
Adjusted EBITDA
Adjusted EBITDA for the 39 weeks ended September 28, 2024, was $(34.7) million, representing (4.3)% of net sales, compared to $(61.0) million, or (6.1)% of net sales for the same period in 2023.
Net Income (Loss)
For the year-to-date period, Fossil Group reported a net loss of $95.1 million, or $(1.80) per diluted share, compared to a loss of $128.9 million, or $(2.47) per diluted share for the same period in 2023.
Cash Flow and Liquidity
As of the end of the third quarter of 2024, Fossil Group had cash and cash equivalents of $106.3 million, down from $116.1 million in the prior year. The company also reported net working capital of $258.3 million, a decrease from $436.4 million at the end of the prior year quarter.
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Resources:
- Fossil Group, Inc. (FOSL) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Fossil Group, Inc. (FOSL)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Fossil Group, Inc. (FOSL)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.