The following is a summary of the Fossil Group, Inc. (FOSL) Q2 2024 Earnings Call Transcript:
Financial Performance:
Q2 2024 saw net sales decline by 19% on a constant currency basis.
Gross margin expanded by 390 basis points due to improvements in product margins and lower smartwatch mix.
Adjusted operating loss was significantly narrowed by nearly 40%, thanks to gross margin expansion and substantial cost reduction.
Business Progress:
Fossil continues to focus on four core priorities: advancing the Transform and Grow Plan (TAG), strengthening the balance sheet, stabilizing the business, and conducting a strategic review of the business model.
Positive sales dynamics in traditional watches globally and strong growth in India were reported.
Exit from the smartwatch category and substantial retail store optimization including closure of up to 55 locations by year-end.
Opportunities:
Fossil signed an expanded license agreement with SKECHERS, extending terms to 2029, aiming to drive further global growth.
Risks:
Persistent soft consumer demand in China and ongoing brand repositioning are presenting challenges, especially in licensed watch brands and leathers.
The wholesale channel in the US and Europe continues to be challenging.
More details: Fossil Group IR
Tips: This article is generated by AI. The accuracy of the content can not be fully guaranteed. For more comprehensive details, please refer to the IR website. The article is only for investors' reference without any guidance or recommendation suggestions.
