• Sat. May 18th, 2024

Why Fossil (FOSL) Shares Are Trading Lower After Hours

ByAkanksha Bakshi

Aug 10, 2022
Why Fossil (FOSL) Shares Are Trading Lower After Hours


Fossil Group Inc FOSL reported second-quarter sales of $371.2 million, a decline of 10% year-over-year and +7% on a constant currency basis, missing the consensus of $435.50 million.

Adjusted EPS was $(0.33), down from $0.08 in 2Q21.

Total digital sales were down 21% Y/Y in constant currency and reflected 35% of the sales mix compared to 41% in the prior year.

Direct-to-consumer net sales increased 5% in constant currency, led by 26% growth in store sales largely offset by decreased e-commerce sales.    

The gross margin contracted by 260 bps to 51.6%. The operating loss for the quarter was $(10.9) million, compared to an income of $14.3million a year ago.

Adjusted operating loss totaled $(7.8) million compared to income of $21.3 million a year ago. Adjusted EBITDA loss was $(0.03) million, or (0.1)% of net sales, and $30.3 million, or 7.4%, in the prior-year quarter.

As of July 2, 2022, Fossil had cash and cash equivalents of $167 million. Inventories of $438 million, an increase of 24% Y/Y. Total debt was $249 million.

“We believe consumer sentiment will continue to be pressured in the second half of the year and have adjusted our full-year outlook to reflect moderating demand globally,” commented Kosta Kartsotis, Chairman and CEO

FY22 Guidance: Fossil now expects a worldwide net sales decline of ~8% to 4%, versus prior growth of flat to ~3%. It expects an adjusted operating margin of 2% to 4% compared to prior guidance of 5.5% to 6.5%.

Price Action: FOSL shares are trading lower by 9.09% at $6 during the post-market session on Wednesday.


Image and article originally from www.benzinga.com. Read the original article here.