Why Fossil Group Shares Are Sliding After-Hours Today

  • Fossil Group Inc FOSL reported fourth-quarter net sales growth of 14% year-over-year to $604.2 million and 16% in constant currency.
  • The company recorded 26% and 21% sales growth in the Americas and Europe regions. Total digital sales grew 7% on a reported basis and represented 40% of worldwide net sales.
  • Adjusted EPS improved to $0.64 from $0.19 in 4Q20.
  • The gross margin increased by 90 bps to 50.1% versus 49.2% a year ago.
  • Q4's Operating margin was 7.8% compared to 3.5% in the prior-year fourth quarter. The adjusted operating margin was 8.8% compared to 6.8% 4Q20.
  • Adjusted EBITDA was $57.6 million, or 9.5% of net sales for the quarter.
  • Total liquidity was $451 million, comprised of $251 million of cash and cash equivalents and $200 million of availability under our revolving credit facility at the end of the quarter.
  • FY2 Outlook: Fossil expects worldwide net sales growth of ~2% to 6% and an Adjusted operating income margin in the range of approximately 6% to 7%.
  • "While we recognize that current geopolitical circumstances may impact consumer sentiment, we remain confident that executing our core operating and growth strategies will enable us to deliver sustainable, profitable growth and value creation for our shareholders over the long-term," said Kosta Kartsotis, Chairman and CEO
  • Price Action: FOSL shares are trading lower by 13.90% at $12.51 during the aftermarket session on Wednesday.

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