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Core Viewpoint - Fossil Group, Inc. reported a mixed performance in its fourth-quarter earnings, with a narrower net loss compared to the previous year, but significant declines in net sales driven by weak consumer demand and strategic exits from certain product categories [2][3][15]. Financial Performance - The company incurred a fourth-quarter net loss of $0.14 per share, an improvement from a loss of $0.54 per share in the prior year [2]. - Net sales totaled $342.3 million, an 18.8% decline from $421.3 million in the prior-year period [3]. - For the full year 2024, net sales were $1.1 billion, down 18.9% from $1.4 billion in 2023 [15]. Gross Margin and Operating Income - Despite the sales decline, gross margin expanded by 630 basis points year over year to 53.9% [4]. - The company reported an operating loss of $16.3 million, improved from a $24 million loss in the prior-year quarter [5]. Regional and Segment Performance - Sales declined by 21% in Europe, 18% in the Americas, and 13% in Asia on a constant currency basis [6]. - Direct-to-consumer sales fell 27%, driven by a 20% drop in comparable retail sales [6]. Product Category Performance - Traditional watch sales declined 10% in constant currency, while leather goods and jewelry sales dropped 37% and 19%, respectively [7]. Cost Management and Efficiency - Operating expenses decreased 10.5% year over year to $200.9 million, with SG&A expenses falling 17% to $172.1 million [8]. - The company aims to achieve $100 million in SG&A savings through various restructuring initiatives [17]. Turnaround Strategy - CEO Franco Fogliato outlined a three-pronged turnaround strategy focusing on core business refocusing, cost reduction, and balance sheet strengthening [10]. - The plan includes closing approximately 50 retail stores in 2025 and transitioning select international markets to a distributor model [11]. Leadership Changes - Fossil announced the hiring of Randy Greben as CFO, effective March 17, 2025, as part of its efforts to return to profitable growth [12]. Future Outlook - The company provided a cautious outlook for fiscal 2025, expecting net sales to decline in the mid-to-high teens and anticipating a $45 million revenue impact from store closures [16].

Financial Performance - Total net sales for fiscal year 2024 were $1,144,990, a decrease of 19% compared to $1,412,384 in 2023[341]. - Gross profit for 2024 was $597,151, down from $679,581 in 2023, reflecting a gross margin decline[341]. - Operating loss for 2024 was $(103,947), an improvement from $(143,024) in 2023[341]. - Net loss attributable to Fossil Group, Inc. for 2024 was $(102,671), compared to $(157,088) in 2023, indicating a reduction in losses[341]. - Total current assets decreased to $554,515 in 2024 from $710,690 in 2023, a decline of approximately 22%[338]. - Total assets decreased to $763,567 in 2024 from $978,030 in 2023, representing a decline of about 22%[338]. - Total stockholders' equity fell to $136,724 in 2024 from $251,738 in 2023, a decrease of approximately 46%[338]. - Cash and cash equivalents increased to $123,598 in 2024 from $117,197 in 2023, showing a growth of about 5.5%[338]. - The company reported a restructuring expense of $59,781 in 2024, up from $43,279 in 2023, indicating increased costs related to restructuring efforts[341]. - Net income for fiscal year 2024 was a loss of $106.276 million, an improvement from a loss of $156.659 million in fiscal year 2023[347]. - Total consolidated revenue for Fiscal Year 2024 was $1,144.99 million, a decrease of 19% from $1,412.38 million in Fiscal Year 2023[388]. - Traditional watches revenue decreased to $872.65 million in Fiscal Year 2024 from $1,015.08 million in Fiscal Year 2023, representing a decline of 14%[388]. - Smartwatches revenue dropped significantly to $24.88 million in Fiscal Year 2024 from $80.95 million in Fiscal Year 2023, a decrease of 69%[388]. Operational Risks - The company faces numerous operational risks, including potential supply chain disruptions and the ability to develop innovative products[19]. - The company is highly leveraged, which may adversely affect its financial condition and ability to meet debt obligations[24]. - The company has experienced challenges related to inventory valuation, requiring significant management judgment regarding future demand and market conditions[331]. - The company is subject to risks related to competition from both traditional and online-only retailers, impacting its market position[24]. - The company’s operations are influenced by changing regulatory requirements and political scrutiny, particularly regarding ESG matters[19]. - The company’s financial performance may be impacted by fluctuations in raw material prices and inflation[24]. Cash Flow and Debt Management - Net cash provided by operating activities was $46.680 million in fiscal year 2024, compared to a cash used of $59.459 million in fiscal year 2023[347]. - Total debt borrowings in fiscal year 2024 amounted to $115.702 million, while debt payments were $159.495 million[347]. - Cash and cash equivalents at the end of fiscal year 2024 were $126.592 million, up from $121.583 million at the end of fiscal year 2023[347]. - The Company had net payments of $46.1 million under the Revolving Facility during fiscal year 2024, with available borrowing capacity of approximately $53.4 million as of December 28, 2024[424]. - Total debt decreased from $212.6 million as of December 30, 2023, to $168.1 million as of December 28, 2024, representing a reduction of approximately 21%[410]. - The Company’s long-term debt as of December 28, 2024, was $165.9 million, down from $212.1 million in the previous year[410]. - Interest expense related to the Notes and Revolving Facility amounted to $10.4 million and $2.3 million, respectively, during fiscal year 2024[424]. Restructuring and Strategic Plans - The Turnaround Plan aims to achieve approximately $100 million in SG&A cost savings in fiscal 2025 compared to fiscal 2024, with $50 million in total charges expected, of which $7 million was incurred in fiscal 2024[484]. - The TAG plan achieved annualized operating income benefits of $280 million over fiscal years 2023 and 2024, with $125 million in fiscal 2023 and $155 million in fiscal 2024[488]. - In fiscal year 2024, the Company incurred restructuring charges of $60,542 million under the TAG plan, compared to $48,816 million in fiscal year 2023[489]. - The Company plans to close approximately 50 retail stores as part of its restructuring efforts[484]. - The Turnaround Plan focuses on refocusing on core operations, rightsizing the cost structure, and strengthening the balance sheet[484]. - The Company expects to identify additional cost-reduction opportunities that may generate incremental savings in 2025[484]. Tax and Deferred Tax Assets - The provision for income taxes for fiscal year 2024 was $(11.8) million, a significant decrease from a provision of $522,000 in 2023[430]. - The effective tax rate for fiscal year 2024 was 10.0%, influenced by the release of reserves for uncertain tax positions[431]. - The total valuation allowance against deferred tax assets was $226.5 million, with $149.6 million related to U.S. operations and $76.8 million to foreign operations[432]. - The Company has $460.5 million of undistributed earnings and profits from foreign subsidiaries that are planned to be reinvested outside the U.S.[433]. - Unrecognized tax benefits totaled $6.8 million for fiscal year 2024, down from $23.6 million in 2023[434]. - The Company recorded $2.1 million of unrecognized tax benefits that could be settled within the next twelve months as of December 28, 2024[436]. Inventory and Asset Management - The company reported a decrease in inventories to $58.638 million in fiscal year 2024 from $125.766 million in fiscal year 2023[347]. - Total inventories decreased to $178.58 million in Fiscal Year 2024 from $252.83 million in Fiscal Year 2023, reflecting a reduction of 29%[391]. - Prepaid expenses and other current assets decreased to $90.18 million in Fiscal Year 2024 from $152.72 million in Fiscal Year 2023, a decline of 41%[393]. - Property, plant, and equipment-net decreased to $41.57 million in Fiscal Year 2024 from $57.24 million in Fiscal Year 2023, a reduction of 27%[394]. - The company had no material contract assets and reported contract liabilities of $2.1 million related to gift cards as of December 28, 2024[388]. Shareholder and Stock Information - The Company had $20.0 million of repurchase authorizations remaining under its common stock repurchase plan as of December 28, 2024[450]. - The Company did not issue stock options, stock appreciation rights, and performance stock appreciation rights in fiscal years 2024, 2023, and 2022[457]. - The total fair value of shares/units vested during fiscal years 2024, 2023, and 2022 was $0.9 million, $2.6 million, and $9.4 million, respectively[458].

Financial Performance - Fourth quarter worldwide net sales were $342 million, down 19% on a reported basis and 18% in constant currency compared to $421.3 million in Q4 2023[5]. - Full year 2024 net sales totaled $1.1 billion, a decrease of 18.9% on a reported basis compared to $1.4 billion in 2023[12]. - For the 13 weeks ended December 28, 2024, net sales were $342.3 million, a decrease of 18.7% compared to $421.3 million for the same period in 2023[21]. - The Americas segment reported net sales of $164.2 million for the 13 weeks ended December 28, 2024, down from $203.7 million in the prior year[24]. Profitability and Loss - Fourth quarter adjusted operating income was $20.1 million, or 5.9% of net sales, compared to an adjusted operating loss of $8.5 million in Q4 2023[12]. - Full year 2024 net loss totaled $102.7 million with loss per diluted share of $1.94, compared to a net loss of $157.0 million and loss per diluted share of $3.00 in the prior year[16]. - Operating income for the 13 weeks ended December 28, 2024, was a loss of $16.3 million, compared to a loss of $24.0 million for the same period in 2023[21]. - Fiscal 2024 total income (loss) before income taxes was $(118.1) million, compared to $(156.1) million in Fiscal 2023, showing an improvement of 24.4%[27]. - Adjusted EBITDA for Fiscal 2024 was $(11.6) million, while Fiscal 2023 reported $(62.6) million, indicating a significant improvement[27]. - Operating income (loss) for the 52 weeks ended December 28, 2024, was $(34.3) million, compared to $(92.0) million for the same period in 2023, reflecting a 62.7% improvement[30]. - The company reported a diluted earnings (loss) per share of $(1.94) for the 52 weeks ended December 28, 2024, compared to $(3.00) for the same period in 2023, indicating a reduction in losses[30]. Cost Management and Savings - The company expects SG&A savings of approximately $100 million in 2025 versus 2024, driven by workforce reduction and store closures[6]. - The company incurred restructuring expenses totaling $59.8 million in Fiscal 2024, compared to $43.3 million in Fiscal 2023[27]. - Interest expense for Fiscal 2024 was $19.0 million, slightly lower than $21.8 million in Fiscal 2023[27]. Inventory and Assets - Inventory at year-end was $178.6 million, representing a decrease of 29.4% versus a year ago[5]. - Total current assets decreased to $554.5 million in 2024 from $710.7 million in 2023, primarily due to a reduction in inventories[22]. - Total assets decreased to $763.6 million in 2024 from $978.0 million in 2023, reflecting a decline in both current and long-term assets[22]. Future Outlook - The company anticipates worldwide net sales decline in the range of mid to high teens for 2025[17]. - Adjusted operating income margin for 2025 is expected to be in the negative low single digits[17]. - The company is focusing on enhancing its product offerings, particularly in smartwatches, which saw a notable increase in sales[24]. - The company plans to continue its market expansion efforts despite the store closures, focusing on strategic locations and new product development[31]. Store Operations - The total number of stores decreased from 302 on December 30, 2023, to 248 on December 28, 2024, with 59 stores closed during the year[31]. - The Americas region saw a reduction of 29 stores, ending with 114 stores by December 28, 2024[31]. Margin Improvement - Fourth quarter gross margin expanded 630 basis points to 53.9% due to improved product margins and exit from the smartwatch category[5]. - Gross profit for the 13 weeks ended December 28, 2024, was $184.6 million, resulting in a gross margin of 53.9%, up from 47.6% in the prior year[21]. - The operating margin for the 52 weeks ended December 28, 2024, was (3.0)%, an improvement from (10.1)% in the previous year[30].

Core Insights - Fossil Group, Inc. reported better-than-expected fourth quarter results, achieving an adjusted operating profit of $20 million, indicating that business performance improvement initiatives are gaining traction [4] - The company has introduced a comprehensive turnaround plan focusing on refocusing on core initiatives, rightsizing the cost structure, and strengthening the balance sheet [5] - For 2025, the company expects to achieve SG&A savings of approximately $100 million compared to 2024, alongside a strategic review of its business model and capital structure [5][6] Financial Performance - Fourth quarter worldwide net sales were $342 million, down 19% on a reported basis and 18% in constant currency, with declines across all regions and channels [6][10] - The fourth quarter gross margin expanded by 630 basis points to 53.9%, primarily due to improved product margins and the exit from the smartwatch category [6][10] - Fourth quarter SG&A expenses were $172.1 million, down 17% compared to the same quarter in 2023, reflecting efficiencies from the TAG Plan [6][10] - The company reported a fourth quarter operating loss of $16.3 million, with an adjusted operating income of $20.1 million, translating to an adjusted operating margin of 5.9% [6][10] Long-Term Financial Targets - For the full year 2027, the company aims for worldwide net sales exceeding $800 million and an adjusted operating income margin in the mid-single-digit range [9][18] - The company anticipates a continued decline in worldwide net sales in the mid to high teens for 2025, with an adjusted operating income margin expected to be in the negative low single digits [18] Balance Sheet and Liquidity - As of December 28, 2024, the company had total liquidity of $177 million, including cash and cash equivalents of $124 million [6][14] - Year-end inventory was $178.6 million, representing a decrease of 29.4% compared to the previous year [6][14] Strategic Initiatives - The turnaround plan includes launching a new FOSSIL brand platform, optimizing the global wholesale footprint, and closing approximately 50 retail stores [5] - The company is concluding its TAG Plan, which generated annualized operating income benefits of $280 million over two years [5]

Group 1 - Fossil Group, Inc. will report its fourth quarter and full year 2024 financial results on March 12, 2025, after market close [1] - A conference call to discuss the financial results will take place at 5:00 p.m. ET on the same day, accessible via the company's investor relations website [1] - The call will be archived for replay after the live session [1] Group 2 - Fossil Group, Inc. specializes in lifestyle accessories, including watches, jewelry, handbags, small leather goods, belts, and sunglasses [2] - The company operates a diverse portfolio of 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 committed to design and innovation, supported by an extensive distribution network across various geographies and channels [2]

Core Points - Fossil Group has extended its licensing agreement with Michael Kors until 2027, allowing Fossil to continue designing and innovating Michael Kors watches and jewelry [1][2] - The partnership has been valued by both companies, with Fossil Group's CEO expressing honor in the long-term relationship and looking forward to future opportunities [2] - Michael Kors' CEO also emphasized the importance of the partnership, highlighting Fossil Group as a valued collaborator for many years [2] Company Overview - Fossil Group, Inc. specializes in lifestyle accessories, including watches, jewelry, handbags, and more, under a diverse portfolio of owned and licensed brands [4] - The company is committed to delivering high-quality design and innovation across its brands, which include both owned brands like Fossil and licensed brands such as Michael Kors [4] - Michael Kors is a luxury designer brand known for its range of products, including accessories and ready-to-wear items, with a strong presence in prestigious cities and a robust digital platform [5]

Core Insights - Fossil Group has appointed Joe Martin as Chief Commercial Officer and Antonio Carriero as Chief Digital Information Officer and General Manager of EMEA, effective February 12 and February 17, respectively, to drive a business turnaround and return to profitable growth [1][2][5] Group 1: Leadership Appointments - Joe Martin will oversee all global revenue-generating activities, focusing on building a scalable, high-performing commercial organization, with a strong background in sales and operations from Adidas and 3M [2][3] - Antonio Carriero will manage the global technology strategy, operations, and cybersecurity, while also leading the commercial business for the EMEA region, bringing extensive experience in digital transformation from his previous roles at Salomon, Breitling SA, and Richemont Group [4][5] Group 2: Strategic Focus - The appointments are part of Fossil's strategy to enhance its watch business and create long-term value for stakeholders, emphasizing the importance of sustainable, long-term results [5] - Both leaders are expected to leverage their expertise to advance Fossil's turnaround strategy and drive growth in the luxury and consumer goods sectors [5][6]

Core Insights - The event "Macroeconomics and Climate" focused on aligning economic systems with environmental sustainability amidst climate change and economic instability [1][2] - EBC Financial Group's involvement highlights the urgency of integrating financial markets with academic research to tackle climate and economic challenges [4] Group 1: Event Overview - The session featured a keynote by Associate Professor Andrea Chiavari and a panel discussion moderated by Associate Professor Banu Demir Pakel, discussing the balance between economic growth and climate resilience [2][5] - Panellists included experts from the Environmental Change Institute and EBC Financial Group, providing practical insights on policy, finance, and societal impact [2][8] Group 2: Economic and Environmental Interplay - Dr. Chiavari emphasized the economic costs of climate change, linking the growth of global GDP since the industrial revolution to the environmental toll of fossil fuel consumption [5][6] - The concept of the social cost of carbon was highlighted as essential for shaping effective policies, advocating for carbon taxation as both an environmental and economic necessity [7][16] Group 3: Opportunities and Challenges - Dr. Ranger pointed out that climate action presents economic opportunities, such as job creation and growth, while advocating for redirecting fossil fuel subsidies, estimated at $5 to $7 trillion annually, towards green investments [10][18] - Barrett discussed the need for aligning market incentives with sustainability goals, stressing that financial markets require enforceable regulatory frameworks to drive meaningful climate action [11][19] Group 4: Role of Governments and Individuals - Dr. Demir Pakel stressed the importance of government-led education and awareness initiatives to drive climate action, highlighting the need for policies that incentivize both the private sector and consumer behavior [15][16] - The panelists collectively called for a shift in public narrative to emphasize the economic benefits of climate action, urging governments to lead this change [17][20]

Core Insights - The article does not provide specific insights or analysis regarding any companies or industries, focusing instead on disclaimers and disclosures [1][2] Company and Industry Analysis - No relevant company or industry content is present in the provided documents [1][2]