NASDAQ$FOSL

Fossil Group Inc. · Q2 2022 earnings

Q2 2022 earnings · · Investor relations

Briefing

Fossil's worldwide net sales decreased due to declines across all three regions, but FOSSIL brand sales increased driven by traditional watches, jewelry and leathers.

Fossil Group, Inc. reported a decrease in worldwide net sales by 10% to $371 million, with an operating loss of $11 million. The company is adjusting its full year outlook to reflect softening consumer demand and ongoing inflationary pressure.

  • Worldwide net sales decreased 10% to $371 million, or 5% in constant currency, with declines across all three regions.
  • FOSSIL brand sales increased 7% in constant currency driven by traditional watches, jewelry and leathers.
  • Direct to consumer net sales increased 5% in constant currency, led by 26% growth in store sales offset by decreased e-commerce sales.
  • Operating loss was $11 million compared to operating income of $14 million a year ago.

Headline financials

Total Revenue

$371M

Previous: $411M-9.7%
EPS (adj)

-$0.33

Previous: $0.07-571.4%
Gross Margin

51.6%

Previous: 54.0%-4.4%
Capital Expenditures

-$4.47M

Previous: -$3.38M-32.1%
Free Cash Flow

-$23.4M

Previous: -$4.15M-464.4%
Net Income

-$18.9M

Previous: -$765K-2375.2%
Operating Income

-$10.9M

Previous: $14.3M-176.2%
Gross Profit

$191M

Previous: $222M-13.7%
Cash & Equivalents

$167M

Previous: $252M-33.8%
Total Assets

$1.28B

Previous: $1.34B-4.0%
Stock-Based Comp

$3.84M

No prior period

Revenue & EPS history

Fossil · Revenue · Quarterly

$371M

Q2 2022-9.7%vs Q2 2021
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

The Company is updating its guidance for full year 2022 to reflect a more cautious outlook on global markets, including a slowdown in consumer spending, COVID-19 related restrictions in mainland China, and the impact of foreign currency translation.

Tailwinds

  • Focusing on core initiatives in digital and brand heat.
  • Implementing strategies to maximize shareholder value.
  • Remaining agile to navigate global operating conditions.
  • Adjusting full year outlook to reflect moderating demand globally.
  • Anticipating growth in jewelry and leathers businesses.

Headwinds

  • Expecting worldwide net sales declines of approximately 8% to 4%.
  • Including an estimated foreign currency negative impact of 450 basis points.
  • Reducing adjusted operating margin guidance for the full year to 2% to 4%.
  • Acknowledging softening consumer demand.
  • Considering the likelihood of ongoing COVID-19 related restrictions in mainland China.

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 Q2 2022

Historical avgQ2 2022

+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%+6.6%
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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