NASDAQ$FOSL

Fossil Group Inc. · Q3 2022 earnings

Q3 2022 earnings · · Investor relations

Briefing

Reported a decrease in worldwide net sales and operating income due to macro headwinds, including COVID-19 restrictions in mainland China, elevated inventory levels among wholesale partners, and global inflation.

Fossil Group's third-quarter results were in line with expectations despite global macro headwinds. Worldwide net sales decreased by 11% on a reported basis, and operating income also declined compared to the previous year. The company is focusing on capturing efficiencies and driving growth through its digital roadmap and updated FOSSIL brand strategy.

  • Worldwide net sales totaled $436 million, an 11% decrease on a reported basis.
  • Direct to consumer net sales increased 5% in constant currency.
  • Operating income was $22 million, compared to $48 million a year ago.
  • Cash and cash equivalents totaled $163 million as of October 1, 2022.

Headline financials

Total Revenue

$436M

Previous: $492M-11.3%
EPS (adj)

$0.12

Previous: $0.68-82.4%
Operating Margin

5.2%

No prior period
Gross Margin

50.3%

No prior period
Capital Expenditures

-$8.72M

Previous: -$6.74M-29.4%
Free Cash Flow

-$2.44M

Previous: $25.2M-109.7%
Net Income

$6.28M

Previous: $31.9M-80.3%
Operating Income

$22.5M

Previous: $47.8M-53.0%
Gross Profit

$220M

Previous: $260M-15.4%
Cash & Equivalents

$163M

Previous: $182M-10.5%
Total Assets

$1.31B

Previous: $1.36B-3.0%
Stock-Based Comp

-$264K

No prior period

Revenue & EPS history

Fossil · Revenue · Quarterly

$436M

Q3 2022-11.3%vs Q3 2021
Beat estimate in 6 of 11 quarters(55%)
ActualEstimate

Revenue by segment

Fossil · $79M total across 2 segments · Q3 2022

  • Leathers
    $41.1M
  • Jewelry
    $37.9M

Forward guidance

The Company is updating its guidance for full year 2022 to reflect the estimated impact of prevailing foreign currency translation, and a more cautious outlook on global markets, including a slowdown in consumer spending in our categories, and the ongoing COVID-19 related restrictions in mainland China. For fiscal year 2022, the Company now expects worldwide net sales declines of approximately 7% to 10% versus prior guidance of net sales declines of 5% to 8%.

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 Q3 2022

Historical avgQ3 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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