Fossil Group, Inc. (NASDAQ: $FOSL) is a company specializing in the design, marketing, and distribution of consumer fashion accessories. The company’s product range includes traditional men’s and women’s fashion watches, smartwatches, jewelry, handbags, small leather goods, belts, and sunglasses.
Fossil Group operates in three segments: Americas (covering sales in the United States, Canada, and Latin America), Europe (encompassing sales in European countries, the Middle East, and Africa), and Asia (covering sales in Australia, China, India, Indonesia, Japan, Malaysia, New Zealand, Singapore, South Korea, and Thailand).
The company owns brands such as FOSSIL, SKAGEN, MICHELE, RELIC, and ZODIAC, and holds licenses for brands like ARMANI EXCHANGE, DIESEL, DKNY, EMPORIO ARMANI, KATE SPADE NEW YORK, MICHAEL KORS, PUMA, and TORY BURCH. Fossil Group distributes its products through various channels, including wholesale, retail stores, commercial websites, and other outlets.
Summary of Third Quarter Performance:
- Global net sales for the third quarter amounted to $344 million, marking a 21% decrease.
- Direct-to-consumer channel net sales declined by 12% in constant currency, with a corresponding 6% drop in comparable retail sales. Wholesale channel net sales experienced a 25% decrease, while the Company’s global owned ecommerce platform showed growth of 8%.
- FOSSIL brand sales saw a 14% decline in constant currency, primarily attributed to a modest reduction in traditional watches, along with more significant declines in smartwatches and leathers.
- The operating loss for the quarter was $46 million, contrasting with the $22 million operating income reported a year ago. Adjusted operating loss was $31 million, compared to adjusted operating income of $23 million in the previous year.
- Inventory amounted to $327 million, reflecting a 28% decrease compared to the previous year. The Company’s total liquidity at the end of the quarter was $140 million.
Kosta Kartsotis, Chairman and CEO, commented, “In the face of challenging category, consumer, and channel dynamics, our year-to-date financial results are below expectations.
We are intensely focused on delivering strong execution during the holiday season and implementing our TAG Plan aimed at optimizing our cost structure and enhancing profitability.
For the full year 2023, we remain on course to achieve expected annualized cost savings of approximately $100 million, progressing towards our previously announced target of $300 million in annualized benefits by 2025.”
Fossil Group Selects NewStore Omnichannel Platform to Transform its Shopping Experience Globally
NewStore, a global modular, mobile-first omnichannel cloud platform for retail brands, has announced that Fossil Group, Inc. (NASDAQ: FOSL) is leveraging its technology on a global scale to revolutionize the shopping experience in its Fossil, Fossil Outlet, and Watch Station stores.
The lifestyle accessories company has replaced its outdated store solution with NewStore’s mobile point-of-sale (mPOS), which will be operational in hundreds of locations across 19 countries upon completion of the project.
Through NewStore, Fossil Group has empowered its associates with an app-driven, digitally connected retail experience, enabling them to assist and process customer transactions anywhere on the store floor using a mobile device.
“The NewStore platform marks a significant advancement in Fossil Group’s commitment to delivering a seamless and unified customer experience. Its mobility is a game-changer, enabling associates to transact wherever the customer is shopping within the retail store,” stated Robin Beighley, Vice President – North America Stores at Fossil Group. “The simplicity and consistency of the checkout experience have led to swift adoption by teams and improved conversion rates. NewStore’s innovative cloud-based solution lays the groundwork for rapid digital growth and optimization of our holistic customer journey.”
By replacing its legacy on-premise system with NewStore, Fossil Group has harnessed the benefits of a global, fully cloud-based point-of-sale (POS) system. The company is seamlessly implementing the platform across its network of stores, and future deployments at new locations will be as straightforward as shipping a box of smartphones.
“NewStore is a key, strategic partner for Fossil as we continue to invest in the retail and omnichannel experience. Their platform, with its seamless integrations and intuitive mobile interface, has energized our retail teams and provided immediate value as we progress with our global deployment,” added Steve Richards, Senior Vice President and Chief Information Officer at Fossil Group.
Upon completion of the project, associates will have access to all order and inventory data across the business, streamlining the checkout process and enhancing customer engagement. NewStore will also facilitate omnichannel functionalities such as remote selling, store fulfillment, endless aisle, buy online pickup in-store (BOPIS), and buy online return in-store (BORIS).
Furthermore, with pre-built integrations with the Salesforce suite of products, NewStore enables Fossil Group to extend its recent investments in Commerce Cloud, Marketing Cloud, and Service Cloud to its stores.
“Providing a seamless connected commerce experience across borders demands a partner with the expertise and global infrastructure to make it a reality,” said Stephan Schambach, Founder and CEO of NewStore. “NewStore is the only platform designed to help companies navigate and scale complex digital transformations globally. With rollouts spanning over 50 countries, we have the proven capability to support Fossil Group’s requirements and deliver elevated, consistent experiences to all their stores worldwide.”
Is Fossil Group publicly traded?
Fossil Group shares are listed on Nasdaq under the symbol “FOSL.” If you wish to buy Fossil Group stock, kindly engage the services of your preferred stockbroker or utilize a stock purchase service.
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