NASDAQ$FOSL

Fossil Group Inc. · Q1 2020 earnings

Q1 2020 earnings · · Investor relations

Briefing

Announced first quarter 2020 financial results and provided COVID-19 update.

Fossil Group's worldwide net sales totaled $390.7 million, a decrease of 16% compared to the first quarter of fiscal 2019. The company reported a net loss of $85.6 million, or ($1.69) per diluted share, compared to a net loss of $12.2 million, or ($0.25) per diluted share, in the first quarter of 2019. As of April 4, 2020, the Company had total liquidity of $278 million, comprised of $245 million of cash and cash equivalents and $33 million of availability under its revolving credit facility.

  • Net sales decreased by 16% year-over-year to $390.7 million due to COVID-19 impact.
  • Global retail comparable sales decreased 14% in constant currency, but were trending up 1% prior to COVID-19 store closings.
  • Gross margin decreased to 35.9% from 53.3%, reflecting liquidation and increased inventory valuation adjustments.
  • The company is expanding its NWF 2.0 transformation program to include additional cost savings of $50 million in 2020.

Headline financials

Total Revenue

$391M

Previous: $465M-16.0%
EPS (adj)

-$1.49

Previous: -$0.42-254.8%
Capital Expenditures

-$2.85M

Previous: -$6.57M+56.6%
Free Cash Flow

-$88.3M

Previous: -$18.8M-369.3%
Net Income

-$85.4M

Previous: -$12.2M-598.0%
Operating Income

-$134M

Previous: -$19.9M-573.6%
Gross Profit

$140M

Previous: $248M-43.4%
Cash & Equivalents

$245M

Previous: $271M-9.6%
Total Assets

$1.53B

Previous: $1.59B-3.6%
Stock-Based Comp

$3.1M

Previous: $4.39M-29.3%

Revenue & EPS history

Fossil · Revenue · Quarterly

$391M

Q1 2020-16%vs Q1 2019
Beat estimate in 7 of 16 quarters(44%)
ActualEstimate

Revenue by segment

Fossil · $225M total across 4 segments · Q1 2026

  • Watches
    $190M
  • Jewelry
    $20.1M
  • Leathers
    $10.6M
  • Other
    $3.52M

Forward guidance

Due to continued uncertainty related to COVID-19, the Company is not providing financial guidance at this time. The Company anticipates that the COVID-19 pandemic will continue to pressure sales throughout 2020, with the greatest impact in the second quarter. Due to closures for both FOSSIL stores and our wholesale partners during the majority of the second quarter, worldwide net sales are expected to decline in the range of 60%-70%, with contraction in retail and wholesale partly offset by strength in e-commerce channels.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q1 2020

Historical avgQ1 2020

+0.8%

Avg return

Earnings day

+4.1%

Avg return

5 days after

+5.9%

Avg return

30 days after

45%

29 / 65 earnings

Positive

+102.3%

Q4 2017

Best reaction

-37.8%

Q3 2015

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+5.6%-6.1%
Q4 2025+16.8%+14.3%+24.8%
Q3 2025-9.2%-3.3%+85.7%
Q2 2025+31.5%+74.6%+72.4%
Q1 2025+18.0%+34.1%+5.6%
Q4 2024+29.1%+3.1%-23.6%
Q3 2024-10.8%-6.9%+51.5%
Q2 2024+1.8%-0.9%-2.8%
Q1 2024-4.7%+6.2%+25.8%
Q4 2023-5.6%-1.2%+4.7%
Q3 2023-34.3%-35.4%-28.1%
Q2 2023-10.4%-16.3%-17.9%
Q1 2023-9.2%-32.3%-27.2%
Q4 2022-13.4%-15.3%-24.9%
Q3 2022+10.3%+17.7%+21.6%
Q2 2022-4.2%-12.1%-40.2%
Q1 2022-10.2%-10.9%-23.3%
Q4 2021-28.3%-36.3%-25.3%
Q3 2021+16.7%+13.0%-28.2%
Q2 2021+9.1%+7.6%-3.7%
Q1 2021+0.7%+20.8%+38.6%
Q3 2020+18.1%+42.9%+111.3%
Q2 2020+10.2%+18.9%+50.1%
Q1 2020+27.1%+136.2%+29.2%
Q4 2019-19.4%-19.6%-36.2%
Q3 2019-23.4%-36.5%-42.9%
Q2 2019+9.1%-4.4%+34.6%
Q1 2019+17.0%+9.1%-10.4%
Q4 2018-5.9%-8.2%-9.6%
Q3 2018-7.7%-16.9%-25.7%
Q2 2018-18.9%-18.7%-19.4%
Q1 2018+23.1%+27.5%+90.6%
Q4 2017+102.3%+73.1%+38.4%
Q3 2017-18.8%-5.4%-3.9%
Q2 2017-20.8%-26.8%-21.7%
Q1 2017-16.9%-24.4%-38.5%
Q4 2016-15.2%-9.8%-27.1%
Q3 2016-0.6%+5.7%+27.0%
Q2 2016-0.6%+2.9%-8.4%
Q1 2016-27.9%
Q4 2015+32.9%
Q3 2015-37.8%
Q2 2015-6.0%
Q1 2015-5.6%
Q4 2014-15.0%
Q3 2014+9.0%
Q2 2014-6.5%
Q1 2014-10.8%
Q4 2013+5.3%
Q3 2013-1.3%
Q2 2013+12.8%
Q1 2013+10.7%
Q4 2012-2.1%
Q3 2012-10.8%
Q2 2012+25.2%
Q1 2012+4.8%
Q4 2011+3.6%
Q3 2011+1.2%
Q2 2011+9.5%
Q4 2009+6.9%
Q1 2011+3.1%
Q3 2010-1.3%
Q4 2010-1.1%
Q2 2010-1.1%
Q1 2010-4.6%

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