Fossil Group Inc. · Q2 2021 earnings

Briefing

Reported strong second-quarter performance with solid operational execution across all channels and regions.

Fossil Group reported a strong second quarter with net sales increasing by 59% to $410.9 million. The company's operating income improved significantly to $14.3 million, compared to an operating loss of $36.8 million in the same quarter last year. Based on the strong year-to-date performance, Fossil Group is raising its 2021 outlook.

• Worldwide net sales increased 59%, or 51% on a constant currency basis.
• Net sales through all digital channels grew 10% and 82%, on a constant currency basis, compared to the second quarter of fiscal 2020 and 2019, respectively, and represented 41% of worldwide net sales.
• Operating income of $14 million compared to an operating loss of $37 million a year ago.
• Total liquidity of $294 million, consisting of cash and cash equivalents of $252 million and $42 million of borrowing availability.

Headline financials

Revenue & EPS history

For fiscal year 2021, the Company is raising its outlook for worldwide net sales growth to approximately 14% to 17% and full year Adjusted EBITDA margin guidance to 6% to 8%. For the 13-week quarter ending October 2, 2021, worldwide net sales are expected to increase in the range of 5% to 10% compared to the 13-week quarter ended October 3, 2020.