Group 1: LVMH Performance - LVMH reported H1 2025 revenue of €39.81 billion (approximately $46.6 billion), a 4% decrease from €41.68 billion in the same period last year [3] - Operating profit fell to €9.01 billion, down 15% from €10.65 billion year-on-year [3] - Net profit decreased by 22% to €5.70 billion from €7.27 billion in the previous year [3] Group 2: Richemont Performance - Richemont's total sales for Q1 2025 reached €5.41 billion (approximately $6.33 billion), up from €5.27 billion year-on-year [4] - Jewelry sales increased to €3.91 billion from €3.66 billion, while watch sales decreased to €0.82 billion from €0.91 billion [4] Group 3: Hermès Performance - Hermès reported H1 2025 revenue of €8.03 billion (approximately $9.4 billion), an increase from €7.50 billion in the same period last year [5] - Operating profit rose to €3.33 billion from €3.15 billion year-on-year [5] - Net profit for the group was €2.25 billion, down from €2.37 billion in the previous year [5] Group 4: Kering Performance - Kering's H1 2025 revenue was €7.59 billion (approximately $8.8 billion), down from €9.02 billion year-on-year [6] - Operating profit decreased to €1.00 billion from €1.57 billion [6] - Net profit attributable to the group fell to €0.47 billion from €0.88 billion [6][7] Group 5: EssilorLuxottica Performance - EssilorLuxottica reported adjusted revenue of €14.02 billion for H1 2025, up from €13.29 billion year-on-year [8] - Adjusted operating profit increased to €2.53 billion from €2.43 billion [8] - Adjusted net profit rose to €1.80 billion from €1.75 billion [8] Group 6: Other Companies Performance - Lao Feng Xiang reported H1 2025 revenue of ¥33.36 billion (approximately $4.68 billion), a 16.52% decrease year-on-year [9] - PVH Corp. reported Q2 2025 revenue of $2.17 billion, up from $2.07 billion year-on-year [10] - Swatch Group's H1 2025 net sales were CHF 3.06 billion (approximately $3.83 billion), down 11.2% from the previous year [11] - Tapestry reported Q4 2025 net sales of $1.72 billion, up from $1.59 billion year-on-year [12] - Ralph Lauren's Q1 2025 net sales were $1.72 billion, up from $1.51 billion [13] - Prada Group reported H1 2025 revenue of €2.74 billion (approximately $3.21 billion), an 8% increase year-on-year [15] - Signet Jewelers reported Q2 2025 sales of $1.54 billion, up from $1.49 billion year-on-year [16] - Puig reported H1 2025 revenue of €2.30 billion (approximately $2.69 billion), a 5.9% increase year-on-year [17] - Hugo Boss reported H1 2025 sales of €2.00 billion (approximately $2.34 billion), down from €2.03 billion [18] - Pandora reported Q2 2025 revenue of DKK 7.07 billion (approximately $1.11 billion), up from DKK 6.77 billion [19] - Capri Holdings reported Q1 2025 revenue of $797 million, down from $848 million [20] - Burberry reported Q1 2025 retail revenue of £433 million (approximately $586 million), down 6% year-on-year [21] - Ermenegildo Zegna Group reported H1 2025 revenue of €0.93 billion (approximately $1.09 billion), down from €0.96 billion [23] - Zhou Dasheng reported H1 2025 revenue of ¥4.60 billion (approximately $645 million), a 43.92% decrease year-on-year [24] - Salvatore Ferragamo reported H1 2025 revenue of €0.47 billion (approximately $0.55 billion), down 9.4% year-on-year [25] - Fossil Group reported Q2 2025 net sales of $220 million, down from $260 million [26]

Core Points - Fossil Group, Inc. has initiated an exchange offer to swap its outstanding 7.00% Senior Notes due 2026 for new notes and warrants, with different terms for participants in the New Money Financing and those who do not participate [1][2][3] - The company is also soliciting consent from note holders for proposed amendments to the indenture governing the Old Notes, which includes modifications to covenants and events of default [2][3] - A rights offering is being launched concurrently, allowing holders to purchase new First-Out Notes and receive shares of Common Stock based on their subscription [5][6] Exchange Offer - The exchange offer allows holders to exchange Old Notes for either 9.500% First-Out Notes or 7.500% Second-Out Notes, depending on their participation in the New Money Financing [1][8] - Holders who participate will also receive pro rata portions of Initial Public Warrants [1][8] - The exchange offer will expire at 5:00 PM New York City time on October 7, 2025, with potential extensions based on the effectiveness of registration statements [10] Consent Solicitation - The consent solicitation seeks approval for amendments to the Old Notes Indenture, including the removal of certain covenants and the subordination of Old Notes to New Notes [2][9] - Holders who tender their Old Notes will be deemed to have consented to these amendments and appointed a proxy for a potential UK Proceeding [3][9] Rights Offering - The rights offering provides holders with Subscription Rights to purchase First-Out Notes at 100% of their face value, with a share of Common Stock for every $34.06 of First-Out Notes purchased [5][6] - A total of $12,941,327 of First-Out Notes will be offered to non-supporting holders, while $19,558,673 will be allocated to supporting holders [6] Supporting Holders - Supporting Holders, who hold approximately 60% of the Old Notes, have agreed to participate in the New Money Financing and support the proposed amendments and UK Proceeding [12] - They will exchange their Old Notes for new First-Out Notes and have committed to purchasing additional notes if not all holders participate in the rights offering [12]

Core Insights - The article discusses the watch brand Fossil Group, Inc. (NASDAQ: FOSL) and highlights the company's struggles with declining sales and resulting losses [1]. Company Overview - Fossil Group has not been covered in detail for two years due to its poor financial performance, specifically falling sales [1]. Industry Context - The article mentions the broader context of investment management and the green economy, indicating a shift in focus towards sustainable investment opportunities [1].

Core Viewpoint - Fossil Group, Inc. has experienced a significant stock surge of 76.6% following its latest quarterly earnings release, reflecting investor optimism regarding the company's turnaround progress and financial outlook [1] Financial Performance - In Q2 2025, Fossil reported an adjusted net loss of $0.10 per share, an improvement from a loss of $0.47 per share in the same quarter last year [2] - Net sales were $220.4 million, representing a 15.2% decline from $260 million in the prior-year period, primarily due to softness across product categories and the exit from the smartwatch segment [3] - Gross profit was $126.7 million, down 7.4% year over year, but gross margin expanded by 490 basis points to 57.5% from 52.6% a year ago [4] - Operating income reached $8.5 million, a significant improvement from a $34 million loss in Q2 2024, with adjusted operating income at $3.8 million compared to an adjusted operating loss of $17 million a year earlier [5] Business Metrics - Sales declines were broad-based, with revenues falling 19% in the Americas, 14% in Europe, and 12% in Asia on a constant-currency basis [6] - The company closed 47 stores over the past year, reducing its global store count to 214 from 258, and inventories decreased by 11.9% year over year to $178.1 million [7] Management Commentary - CEO Franco Fogliato noted the quarter marked the third consecutive period of positive adjusted operating income, highlighting cost control and gross margin strength as key achievements [8] - Management emphasized upcoming marketing investments and new product launches in the second half of 2025 to strengthen brand positioning [9] Factors Influencing Results - Margin improvements were driven by sourcing initiatives, reduced freight costs, and exiting the lower-margin smartwatch business, with selling, general, and administrative expenses falling nearly 28% year over year [10] - Consumer demand remained pressured, with challenges in retail traffic and category headwinds acknowledged by management [11] Guidance - Fossil raised its full-year 2025 outlook, now expecting worldwide net sales to decline in the mid-teens, an improvement from prior guidance of a mid- to high-teens drop [12] Other Developments - The company announced a comprehensive refinancing plan, securing a new $150 million asset-based revolving credit facility to enhance financial flexibility [13]

Group 1 - The focus has shifted towards offshore drilling, supply industry, and shipping, including tankers, containers, and dry bulk [1] - The fuel cell industry is being monitored as it is still in its early stages of development [1] Group 2 - The individual has extensive experience in auditing with PricewaterhouseCoopers before transitioning to day trading nearly 20 years ago [2] - Successfully navigated significant market events such as the dotcom bubble, the aftermath of the World Trade Center attacks, and the subprime crisis [2]

Financial Data and Key Metrics Changes - The company reported second quarter net sales of $219 million, down 16% in constant currency, which was in line with expectations [20] - Gross margin expanded by 480 basis points year-over-year, reaching 57.4%, marking the third consecutive quarter of gross margin improvement [21] - Adjusted operating income for Q2 was positive $4 million, compared to a loss of $17 million a year ago, resulting in an adjusted operating margin of 1.7% [25] Business Line Data and Key Metrics Changes - The wholesale channel showed continued improvement, with strong comparable sales trends in Fossil retail stores despite reduced promotional activity [5] - Traditional watch sales in the Americas increased by double digits in Q2, while India also showed strong momentum across brands and channels [13] - The company closed six underperforming retail locations in Q2, bringing total closures to 34 year-to-date, with plans to close 45 to 50 locations by year-end [24] Market Data and Key Metrics Changes - Performance in key markets such as the U.S., India, Germany, and the UK improved, while China remained under pressure due to the macro environment [12] - The company noted a resurgence in interest for traditional fashion watches among younger consumers, particularly in India and the Americas [48] Company Strategy and Development Direction - The company is focused on three key pillars: refocusing on core brands, rightsizing the cost structure, and strengthening the balance sheet [4][17] - A new Fossil brand platform is being developed to enhance design and storytelling, with a recent website redesign aimed at improving customer engagement [8] - The company is investing in upper funnel marketing initiatives and collaborations to drive brand awareness and cultural relevance [10][11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate a complex environment and emphasized the importance of operational and financial rigor [18] - The full-year guidance was raised, expecting breakeven to slightly positive adjusted operating margins, reflecting gross margin expansion and significant cost reductions [29] - Management highlighted the importance of maintaining strong relationships with wholesale partners and the positive feedback received from them [41] Other Important Information - The company successfully refinanced its revolving credit facility and entered into a transaction support agreement with bondholders to extend bond maturities into 2029, improving liquidity [26][27] - Year-to-date SG&A savings reached $48 million, with a target of $100 million for the full year [24] Q&A Session Summary Question: Impact of changes in promotional activity and price increases on gross margins - Management noted that the shift to a full-price model has led to improved gross margins, with consumers willing to pay for perceived value [34][35] Question: Trends and initiatives in the wholesale channel - Management highlighted strong relationships with wholesale partners and investments in store presentation and marketing activities [40][41] Question: Strength in the younger consumer category and collaboration initiatives - Management confirmed a resurgence in traditional watches among younger consumers, with successful limited edition collaborations driving brand momentum [46][48]

[Financial Performance Overview](index=1&type=section&id=FOSSIL%20GROUP%2C%20INC.%20REPORTS%20SECOND%20QUARTER%202025%20FINANCIAL%20RESULTS) Fossil Group reported strong Q2 2025 results with positive operating income and raised full-year guidance, driven by its successful turnaround plan [Second Quarter 2025 Financial Highlights](index=1&type=section&id=Second%20Quarter%202025%20Financial%20Highlights) Fossil Group reported positive operating income of $8 million for Q2 2025, a significant turnaround from the loss in the prior year. Despite a 15.2% decline in worldwide net sales to $220 million, gross margin expanded by 490 basis points to 57.5%. The company's strong performance led to an increase in its full-year 2025 guidance Q2 2025 Key Financial Metrics | Metric | Q2 2025 | Change (YoY) | | :--- | :--- | :--- | | Worldwide Net Sales | $220 million | -15.2% | | Gross Margin | 57.5% | +490 bps | | Operating Income | $8 million | N/A (vs. loss in Q2 2024) | | Operating Margin | 3.9% | N/A (vs. negative margin in Q2 2024) | - The company has raised its financial guidance for the **full year 2025**[1](index=1&type=chunk) [Management Commentary](index=1&type=section&id=Management%20Commentary) CEO Franco Fogliato attributed the outperformance to the company's turnaround plan, which has delivered a third consecutive quarter of positive adjusted operating income. He highlighted a comprehensive refinancing plan to strengthen the financial position and expressed confidence in the second half of the year, driven by key brand-building initiatives. This momentum supports the decision to raise the full-year 2025 outlook - The company's turnaround plan is showing strength, resulting in a **third consecutive quarter of positive adjusted operating income**[3](index=3&type=chunk) - A comprehensive refinancing plan was announced to strengthen the balance sheet and support growth plans[2](index=2&type=chunk)[3](index=3&type=chunk) - Focus for the second half of the year includes brand-building initiatives, such as a global campaign featuring celebrity brand ambassador Nick Jonas[3](index=3&type=chunk) [Detailed Financial Analysis](index=1&type=section&id=Detailed%20Financial%20Analysis) This section provides an in-depth analysis of Q2 2025 operating results, including sales performance, profitability, and key balance sheet metrics [Second Quarter 2025 Operating Results](index=1&type=section&id=Second%20Quarter%202025%20Operating%20Results) In Q2 2025, net sales fell 15.2% to $220.4 million, impacted by market softness, the exit from the smartwatch category, and store closures. Despite the sales decline, gross margin improved significantly to 57.5% from 52.6% YoY, driven by better product margins and lower freight costs. Operating expenses decreased by 30.8%, leading to an operating income of $8.5 million, a substantial improvement from a $34.0 million loss in Q2 2024. Net loss narrowed to $2.3 million from $38.8 million in the prior-year quarter Q2 2025 Net Sales Performance (Constant Currency) | Category | Change (YoY) | | :--- | :--- | | **By Region** | | | Americas | -19% | | Europe | -14% | | Asia | -12% | | **By Channel** | | | Wholesale | -6% | | Direct to Consumer | -30% | | **By Product** | | | Traditional Watches | -8% | | Leathers | -39% | | Jewelry | -22% | - The exit from the smartwatch category and store rationalization initiatives accounted for approximately **6 percentage points of the total sales decline**[4](index=4&type=chunk) Q2 2025 Profitability vs. Q2 2024 | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Gross Profit | $126.7M | $136.9M | | Gross Margin | 57.5% | 52.6% | | Operating Expenses | $118.2M | $170.9M | | Operating Income (Loss) | $8.5M | $(34.0)M | | Net Loss | $(2.3)M | $(38.8)M | | Diluted Loss Per Share | $(0.04) | $(0.73) | [Balance Sheet Summary](index=3&type=section&id=Balance%20Sheet%20Summary) As of July 5, 2025, Fossil Group maintained total liquidity of $110.6 million, primarily composed of $109.9 million in cash and cash equivalents. The company successfully reduced inventories by 11.9% year-over-year to $178.1 million. Total debt stood at $179.0 million Balance Sheet Highlights (as of July 5, 2025) | Metric | Amount | YoY Change | | :--- | :--- | :--- | | Total Liquidity | $110.6M | N/A | | Cash and Cash Equivalents | $109.9M | +4.8% | | Inventories | $178.1M | -11.9% | | Total Debt | $179.0M | +12.6% | [Outlook and Strategy](index=3&type=section&id=Outlook%20and%20Strategy) Fossil Group has raised its full-year 2025 financial guidance, reflecting improved sales decline forecasts and a positive adjusted operating margin outlook [Full Year 2025 Outlook](index=3&type=section&id=Full%20Year%202025%20Outlook) Reflecting strong year-to-date performance and progress on its turnaround plan, Fossil Group has raised its financial guidance for the full year 2025. The company now anticipates a smaller decline in net sales and has improved its adjusted operating margin forecast Updated Full Year 2025 Guidance | Metric | New Guidance | Prior Guidance | | :--- | :--- | :--- | | Worldwide Net Sales Decline | Mid-teens | Mid to high teens | | Adjusted Operating Margin | Break even to slightly positive | Negative low single digits | - The net sales guidance includes an expected negative impact of approximately **$45 million related to retail store closures**[9](index=9&type=chunk) [Supplemental Financial Data](index=5&type=section&id=Supplemental%20Financial%20Data) This section provides detailed consolidated financial statements, segment performance data, and reconciliations of GAAP to non-GAAP financial measures [Consolidated Financial Statements](index=5&type=section&id=Consolidated%20Financial%20Statements) This section presents the detailed unaudited consolidated income statements and balance sheets for the periods ended July 5, 2025, and June 29, 2024, providing a comprehensive view of the company's financial position and performance [Consolidated Income Statement](index=5&type=section&id=Consolidated%20Income%20Statement) This statement details the company's revenues, expenses, and net loss for the 13-week periods ended July 5, 2025, and June 29, 2024 Income Statement Summary (13 Weeks Ended) | ($ in millions) | July 5, 2025 | June 29, 2024 | | :--- | :--- | :--- | | Net sales | $220.4 | $260.0 | | Gross profit | $126.7 | $136.9 | | Operating income (loss) | $8.5 | $(34.0) | | Net loss attributable to Fossil Group, Inc. | $(2.3) | $(38.8) | | Diluted loss per share | $(0.04) | $(0.73) | [Consolidated Balance Sheet](index=6&type=section&id=Consolidated%20Balance%20Sheet) This statement provides a snapshot of the company's assets, liabilities, and equity as of July 5, 2025, and June 29, 2024 Balance Sheet Summary | ($ in millions) | July 5, 2025 | June 29, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $109.9 | $104.9 | | Inventories | $178.1 | $202.1 | | Total assets | $704.5 | $785.7 | | Total debt (Short & Long-term) | $179.0 | $159.1 | | Stockholders' equity | $133.9 | $187.1 | | Total liabilities and stockholders' equity | $704.5 | $785.7 | [Segment and Product Performance (Constant Currency)](index=6&type=section&id=Segment%20and%20Product%20Performance%20(Constant%20Currency)) On a constant currency basis for Q2 2025, net sales declined across all geographic segments, with the Americas showing the largest decrease. By product, the exit from smartwatches is evident in its sharp decline, while the core traditional watch category saw a single-digit decrease. Leathers and jewelry categories experienced significant double-digit declines Q2 Net Sales by Segment (Constant Currency) | ($ in millions) | Q2 2025 | Q2 2024 | % Change | | :--- | :--- | :--- | :--- | | Americas | $97.1 | $119.6 | -18.8% | | Europe | $64.2 | $74.8 | -14.2% | | Asia | $57.5 | $65.2 | -11.8% | | **Total** | **$218.9** | **$260.0** | **-15.8%** | Q2 Net Sales by Product (Constant Currency) | ($ in millions) | Q2 2025 | Q2 2024 | % Change | | :--- | :--- | :--- | :--- | | Traditional watches | $177.9 | $194.1 | -8.3% | | Smartwatches | $1.4 | $8.4 | -83.3% | | Leathers | $16.7 | $27.2 | -38.6% | | Jewelry | $18.8 | $24.2 | -22.3% | [Reconciliation of GAAP to Non-GAAP Measures](index=7&type=section&id=Reconciliation%20of%20GAAP%20to%20Non-GAAP%20Measures) The company provides reconciliations for non-GAAP measures to offer a clearer view of underlying business performance by excluding items like restructuring costs and asset impairments. For Q2 2025, Adjusted Operating Income was $3.8 million, and Adjusted EBITDA was $7.0 million, both marking significant improvements from losses of $17.0 million and $11.7 million, respectively, in the prior-year quarter Adjusted EBITDA Reconciliation Summary | ($ in millions) | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Income (loss) before income taxes | $4.1 | $(36.6) | | Adjustments (Interest, D&A, Restructuring, etc.) | +$2.9 | +$24.9 | | **Adjusted EBITDA** | **$7.0** | **$(11.7)** | Adjusted Operating Income Reconciliation Summary | ($ in millions) | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Operating income (loss) (GAAP) | $8.5 | $(34.0) | | Restructuring Expenses | $7.3 | $16.7 | | Gains on Asset Divestitures | $(11.5) | - | | Other Long-Lived Asset Impairment | - | $0.6 | | **As Adjusted Operating Income (Loss)** | **$4.3** | **$(16.7)** | [Store Count Information](index=12&type=section&id=Store%20Count%20Information) As part of its store rationalization strategy, Fossil Group continued to reduce its physical retail footprint. The company closed 47 stores and opened 3, resulting in a net reduction of 44 stores. The total store count decreased from 258 at the end of Q2 2024 to 214 at the end of Q2 2025 Store Count by Region | Region | June 29, 2024 | Opened | Closed | July 5, 2025 | | :--- | :--- | :--- | :--- | :--- | | Americas | 120 | 0 | 19 | 101 | | Europe | 69 | 0 | 17 | 52 | | Asia | 69 | 3 | 11 | 61 | | **Total stores** | **258** | **3** | **47** | **214** |

Core Insights - Fossil Group, Inc. reported a second quarter 2025 net sales of $220 million, a decrease of 15.2% compared to the same period in 2024, primarily due to category softness and a decline in smartwatch sales [5][11] - The company achieved a gross margin of 57.5%, an increase of 490 basis points year-over-year, attributed to improved product margins and reduced freight costs [5][11] - Operating income for the second quarter was $8 million, with an operating margin of 3.9%, marking a significant improvement from a loss of $34 million in the prior year [11][12] - Fossil Group announced a comprehensive refinancing plan aimed at strengthening its balance sheet and increasing liquidity [3][4] Financial Performance - Net sales for the second quarter totaled $220.4 million, down from $260 million in Q2 2024, with declines across all major regions: 19% in the Americas, 14% in Europe, and 12% in Asia [5][11] - Gross profit was $126.7 million, a decline of 7.4% from $136.9 million in the previous year, but gross margin improved to 57.5% from 52.6% [5][11] - Operating expenses decreased by 30.8% to $118.2 million, representing 53.7% of net sales compared to 65.7% in the prior year [5][6] Outlook and Guidance - The company raised its full-year 2025 financial guidance, reflecting strong year-to-date results and ongoing progress in its turnaround strategy [8][12] - Worldwide net sales are expected to decline in the mid-teens, an improvement from previous guidance of a decline in the mid to high teens [12] - Adjusted operating margin is anticipated to be break-even to slightly positive, compared to prior guidance of negative low single digits [12] Balance Sheet and Liquidity - As of July 5, 2025, Fossil Group had total liquidity of $110.6 million, including $109.9 million in cash and cash equivalents [7] - Total debt stood at $179 million, with inventories decreasing by 11.9% to $178.1 million compared to the previous year [7][11]

Core Viewpoint - Fossil Group, Inc. has announced the refinancing of its asset-based lending (ABL) and entered into a Transaction Support Agreement to exchange its outstanding notes, positioning the company for future growth with a stronger balance sheet [1][2]. Group 1: Transaction Details - The Transaction Support Agreement allows holders of Unsecured Notes to participate in a New Money Investment, which is backed by Consenting Noteholders who own approximately 59% of Fossil's 7.00% Senior Notes due 2026 [2][7]. - The company has established a new $150 million asset-based revolving credit facility with Ares Management Credit funds, maturing on August 13, 2030, priced at SOFR plus 500 basis points [7]. - Noteholders can exchange their Unsecured Notes for new First-Out Senior Secured Notes or Second-Out Senior Secured Notes, along with warrants for common stock [8]. Group 2: Restructuring Conditions - If less than 90% of the outstanding principal amount of Unsecured Notes is tendered, the company may proceed with restructuring through the Companies Act 2006 of England and Wales, potentially eliminating all Unsecured Notes [3].

Core Viewpoint - Fossil Group, Inc. is set to report its second quarter 2025 financial results on August 13, 2025, after market close, followed by a conference call to discuss the results [1] Company Overview - Fossil Group, Inc. is a global company focused on design, marketing, distribution, and innovation in lifestyle accessories, including watches, jewelry, handbags, small leather goods, belts, and sunglasses [2] - The company operates a diverse portfolio of both owned and licensed brands, such as Fossil, Michele, Relic, Skagen, Zodiac, Armani Exchange, Diesel, Emporio Armani, kate spade new york, Michael Kors, Skechers, and Tory Burch [2] - Fossil Group is dedicated to delivering high-quality design and innovation across its brands, supported by an extensive distribution network across various geographies, categories, and channels [2]