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Fossil Group Inc. (FOSL+29.92%) has submitted its annual report on Form 10-K filing for the fiscal year ended December 28, 2024.
The filing details Fossil's financial performance, reporting a net sales decrease of 18.9% to $1,145.0 million from $1,412.4 million in the previous year. The decline was attributed to a reduction in demand across all regions and product categories, including traditional watches, smartwatches, leathers, and jewelry.
Gross profit for the year was $597.2 million, down from $679.6 million, with a gross margin increase to 52.2% from 48.1% the previous year. This increase was primarily due to improved product margins and the exit from the smartwatch category.
Operating expenses decreased to $701.1 million from $822.6 million, with selling, general, and administrative expenses accounting for the majority. The company incurred $59.8 million in restructuring charges as part of its Transform and Grow plan.
Fossil reported an operating loss of $103.9 million, an improvement from the $143.0 million loss in the prior year. The net loss attributable to Fossil Group Inc. was $102.7 million, or $1.94 per diluted share, compared to a net loss of $157.1 million, or $3.00 per diluted share, in the previous year.
The company highlighted its Turnaround Plan, focusing on refocusing on core areas, rightsizing cost structures, and strengthening the balance sheet. Initiatives include closing underperforming stores and transitioning smaller international markets to a distributor model.
Fossil's liquidity position at year-end included $123.6 million in cash and cash equivalents, with $53.4 million available under its revolving credit facility.
The filing also notes the company's commitment to human capital management, with a focus on leadership development, employee engagement, and diversity and inclusion initiatives.
Fossil Group Inc. continues to face risks related to changing fashion trends, competition, supply chain disruptions, and foreign currency fluctuations, as detailed in the risk factors section of the filing.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Fossil Group Inc. annual 10-K report dated March 12, 2025. To report an error, please email earnings@qz.com.