Financial Data and Key Metrics Changes - Third quarter net sales totaled $288 million, down 16% in constant currency, with 600 basis points of the decline attributable to the smartwatch exit and store closures [25][24] - Gross margin expanded 240 basis points year-over-year to 49.4%, primarily due to the exit of connected products and benefits from retail pricing and promotional initiatives [27][24] - SG&A expenses decreased by $31 million to $161 million, representing a 16% reduction, driven by lower store operating costs and decreased marketing spend [28][24] - Adjusted operating loss narrowed to $19 million, reflecting a 39% improvement compared to the adjusted operating loss of $31 million last year [30][24] - Total liquidity at the end of the quarter was $130 million, including $106 million in cash and cash equivalents [32][24] Business Line Data and Key Metrics Changes - Traditional watches declined 4% globally on a comp basis in Q3, while India saw an increase of about 10%, excluding connected products [25][24] - Selected licensed brands such as Armani Exchange, SKECHERS, and Tory Burch showed strength, while larger licensed watch brands faced challenges [26][24] Market Data and Key Metrics Changes - The company closed seven stores, ending the quarter with 251 stores, a 17% reduction compared to a year ago, with expectations to close up to 58 by year-end [29][24] - Inventory levels decreased by 30% compared to a year ago, aligning with expectations [32][24] Company Strategy and Development Direction - The company is prioritizing three key areas: redefining and focusing on its core business, rightsizing the business, and strengthening the balance sheet [15][21][22] - A new brand platform is being developed to reignite consumer connection and cultural relevance, supported by a strong innovation pipeline and marketing [19][24] - The company plans to rebuild relationships with wholesale partners and strengthen its digital business for more profitable operations [20][24] Management's Comments on Operating Environment and Future Outlook - Management expressed a strong sense of urgency to execute the turnaround and create value for shareholders, with a commitment to moving swiftly [22][37] - The company expects to achieve at least $100 million of annualized P&L benefits in 2024 across margin and SG&A under the TAG Plan [36][24] - Guidance for worldwide net sales is revised to approximately $1.1 billion, with an adjusted operating margin loss expected to range from negative 6% to negative 8% [35][24] Other Important Information - The company completed the sale of its building in France, generating approximately $8 million in net proceeds, and is progressing towards a sale leaseback of its distribution center in Germany [33][24] - Restructuring costs related to the TAG plan are estimated to be approximately $40 million for the full year of 2024 [36][24] Q&A Session Summary - The Q&A session did not contain any specific questions or answers as the call concluded without further inquiries [38]

Core Insights - Fossil Group, Inc. reported an adjusted net loss per share of 51 cents for Q3 2024, an improvement from a loss of 93 cents per share in the same period last year [1] - Revenues decreased by 16.4% to $287.8 million from $344.1 million year-over-year, influenced by strategic exits from the smartwatch segment and retail closures [1][15] Financial Performance - Gross margin improved to 49.4%, up from 47% in the previous year, primarily due to the Transform and Grow (TAG) Plan [9] - Operating expenses decreased by 20% to $166.7 million from $208.1 million, reflecting efficiencies from the TAG Plan [10] - The operating loss narrowed to $24.5 million from $46.4 million year-over-year, with adjusted operating loss also improving to $18.7 million from $31.1 million [11] Sales Performance - Sales in the Americas fell to $121.3 million, a 20% decline in constant currency [4] - European sales dropped to $97 million, an 11% year-over-year decline in constant currency [5] - Asia reported $69 million in sales, marking a 17% decrease in constant currency [6] - Total watch sales decreased to $227.2 million from $270 million, with traditional watch sales down 12% in constant currency [7] Strategic Initiatives - The TAG Plan aims for $300 million in annualized operating income benefits by 2025, with $125 million achieved in 2023 and at least $100 million expected in 2024 [3] - Fossil's strategic business review, initiated in March 2024, may lead to further operational adjustments, including cost reductions and debt refinancing [16] Balance Sheet Overview - As of September 28, 2024, Fossil held cash and cash equivalents of $106.3 million, down from $116.1 million a year earlier [13] - Total assets decreased to $812.4 million from $1.1 billion, while long-term debt reduced to $173.4 million from $255.9 million [13] - Shareholders' equity fell significantly to $161.9 million from $278.8 million [14] Management Guidance - For 2024, Fossil projects net sales of around $1.1 billion, factoring in a $100 million negative impact from the smartwatch exit and store closures [15] - Adjusted operating margin is expected to be between (6)% and (8)%, with positive free cash flow anticipated due to tax refunds [15]

Exhibit 99.1 FOSSIL GROUP, INC. REPORTS THIRD QUARTER 2024 FINANCIAL RESULTS Remains On Track to Achieve at Least $100 Million of Annualized Savings in 2024 Under TAG Plan Updates Full Year Outlook Richardson, TX, November 7, 2024 (GLOBE NEWSWIRE) - Fossil Group, Inc. (NASDAQ: FOSL) today announced financial results for the fiscal third quarter ended September 28, 2024. Third Quarter Summary • Third quarter worldwide net sales decreased to $288 million, down 16% on both a reported and constant currency basi ...

Remains On Track to Achieve at Least $100 Million of Annualized Savings in 2024 Under TAG Plan Updates Full Year Outlook RICHARDSON, Texas, Nov. 07, 2024 (GLOBE NEWSWIRE) -- Fossil Group, Inc. (NASDAQ: FOSL) today announced financial results for the fiscal third quarter ended September 28, 2024. Third Quarter Summary Third quarter worldwide net sales decreased to $288 million, down 16% on both a reported and constant currency basis. The results included six points of negative impact related to the Company's ...

RICHARDSON, Texas, Sept. 04, 2024 (GLOBE NEWSWIRE) -- Fossil Group, Inc. (NASDAQ: FOSL) ("Fossil" or the "Company") today announced the appointment of Franco Fogliato as Chief Executive Officer and a member of the Board of Directors. He succeeds Jeffrey Boyer, Fossil's Interim CEO, who will resume his previous role as Chief Operating Officer and step down from the Board of Directors, all effective September 18, 2024. "The Board of Directors is thrilled to welcome Franco to the Fossil team," said Kevin Manse ...

Fossil Group, Inc. (FOSL) incurred a net loss per share of 73 cents for the second quarter of 2024, wider than the net loss of 51 cents in the same period last year. This widening loss was primarily driven by a decline in sales and substantial restructuring costs. Net sales for the quarter stood at $260 million, reflecting a 19.3% year-over-year decrease from $322 million in the second quarter of 2023. The sharp decline in revenues was due to reduced sales across key categories and geographies, exacerbated ...

Financial Data and Key Metrics Changes - In Q2 2024, net sales totaled $260 million, down 19% on a constant currency basis, impacted by the exit from the smartwatch category and store closures [14][5] - Gross margin expanded by 390 basis points compared to the previous year, primarily due to improved product margins from TAG initiatives and a lower smartwatch mix [14][4] - SG&A expenses decreased by $34 million, representing an 18% reduction year-over-year, attributed to lower store operating costs and fewer stores [15][16] - Adjusted operating loss narrowed to $17 million, reflecting a 39% improvement from an adjusted operating loss of $28 million a year ago [16][14] Business Line Data and Key Metrics Changes - Traditional watches showed stabilization, with sales approximately flat globally, while Fossil traditional watches increased by 4% in DTC channels in Q2 [11][5] - The licensed watch brands and leathers category, which represents about half of revenue, faced pressure due to brand repositioning and soft consumer demand, particularly in China [6][5] - Sales in India increased by double digits compared to last year, indicating strong growth across virtually all brands [5][11] Market Data and Key Metrics Changes - The wholesale channel in the US and Europe remains challenging, with soft consumption sentiment noted in China [5][4] - About half of the sales base is beginning to stabilize, with Q1 performance flat and Q2 results down about 4% [5][4] Company Strategy and Development Direction - The company is focused on four core priorities: advancing the Transform and Grow (TAG) Plan, strengthening the balance sheet, stabilizing the business, and conducting a strategic review of the business model [7][8] - The TAG Plan aims to achieve at least $100 million of annualized benefits in 2024, with total expected benefits of $300 million [8][9] - A shift to a globally led operating model with regional execution of consolidated brand strategies is a critical element of the TAG Plan [8][9] Management's Comments on Operating Environment and Future Outlook - Management expects sequential improvement in sales, gross margin, and adjusted operating margin for the remainder of 2024 [13][12] - The company remains on track to achieve net sales of approximately $1.2 billion for the full year, with an adjusted operating margin loss expected to range from negative 3% to negative 5% [17][13] - Management acknowledges the current business is not at its potential but remains focused on stabilizing and improving financial performance [18][12] Other Important Information - The company received a $57 million tax refund in Q2, which strengthened its liquidity position [10][17] - Total liquidity at the end of the quarter was $156 million, providing flexibility to execute the TAG Plan [17][10] Q&A Session Summary Question: What is being done to stabilize the top-line and when is growth expected? - The company is directing programs and funding towards key top-line opportunities, increasing upper funnel marketing programs to generate demand [19] Question: What is happening in the core traditional watch business? - About half of the traditional watch business performed consistently with industry trends, while other parts remain pressured due to softness in China and brand repositioning efforts [21] Question: Are there plans for equity or bond buybacks given liquidity levels? - The company believes current valuation levels do not reflect long-term potential but prioritizes maintaining financial flexibility over buybacks [22] Question: How many quarters of runway are there to execute the TAG plan? - Ample runway exists to execute the TAG plan, with most initiatives expected to complete by 2024 [23] Question: What is the status of potential refinancing out of upcoming debt maturity? - The company is assessing potential debt and equity financings and has retained a financial advisor for this process [24] Question: Can you explain the cash flow situation this year? - Seasonal working capital needs and projected sales decline will require operating cash use in the near term, but positive free cash flow is expected in Q4 [25]

Financial Performance - Second quarter worldwide net sales decreased to $260 million, down 19% on a reported basis and 18% in constant currency, impacted by the exit from the smartwatch category and retail store optimization[1] - Operating loss was $34 million compared to a loss of $35 million in the prior year, with an adjusted operating loss of $17 million compared to $28 million last year[2] - Net loss totaled $38.8 million with a net loss per diluted share of $0.73, compared to a net loss of $26.5 million and $0.51 per diluted share in the prior year[9] - The net loss attributable to Fossil Group, Inc. for the 13 weeks ended June 29, 2024, was $(38.8) million, compared to a net loss of $(26.5) million for the same period in 2023[15] - The company reported an adjusted EBITDA of $(29.3) million for Fiscal Q3 2023, compared to $(1.6) million in Q4 2022, indicating a significant decline[21] - The adjusted net income for the fiscal year was $(25.1) million, with a significant drop in performance compared to previous periods[24] Revenue and Sales - The company anticipates full year 2024 worldwide net sales of approximately $1.2 billion, reflecting consumer and channel softness, including a $100 million negative impact from the smartwatch exit[13] - Net sales for the 13 weeks ended June 29, 2024, were $260.0 million, a decrease of 19.3% compared to $322.0 million for the same period in 2023[15] - Total net sales for the Americas segment were $119.6 million for the 13 weeks ended June 29, 2024, down from $146.7 million in the same period last year[18] Cost Management and Expenses - SG&A expenses were $154 million, down 18% year-over-year, primarily due to lower compensation costs from efficiencies under the TAG Plan[2] - Total operating expenses for the 13 weeks ended June 29, 2024, were $170.9 million, representing 65.7% of net sales, compared to 59.6% in the same period last year[15] - Interest expense for Fiscal Q3 2023 was $5.8 million, slightly down from $5.9 million in Q4 2022, while total interest expenses for the fiscal year reached $20.7 million[21] - The company experienced a restructuring expense of $16.0 million in Fiscal Q3 2023, contributing to a total of $58.3 million for the fiscal year[21] Profitability and Margins - Gross margins expanded 390 basis points to 52.6%, reflecting progress under the TAG Plan[1] - Fiscal year adjusted operating margin is expected to be in the range of -3% to -5%[13] - The operating margin for the fiscal year was reported at (13.1)% of net sales, reflecting ongoing challenges in profitability[24] Strategic Initiatives - The TAG Plan is expected to generate additional annualized operating income benefits of at least $100 million in 2024, with restructuring costs estimated at $40 million for the fiscal year[11] - The company is conducting a strategic review of its business model and capital structure, which may include additional debt and equity financing options[12] - The company plans to continue its market expansion efforts despite the current challenges, focusing on new product development and technology advancements[21] Assets and Liquidity - Inventory totaled $202 million, a decrease of 38% versus a year ago, with total liquidity of $156 million at quarter end[2] - Total assets decreased to $785.7 million as of June 29, 2024, down from $1,073.4 million as of July 1, 2023[16] - Cash and cash equivalents decreased to $104.9 million as of June 29, 2024, compared to $132.1 million as of July 1, 2023[16] Store Operations - Store count decreased from 315 stores on July 1, 2023, to 258 stores by June 29, 2024, with 62 stores closed during this period[28] Product Development - The company is focused on innovation and expanding its product offerings, including traditional and smartwatches, which generated $202.5 million in sales for the 13 weeks ended June 29, 2024[18]

Continued Operational and Financial Progress under TAG Plan Maintains Full Year 2024 Outlook RICHARDSON, Texas, Aug. 08, 2024 (GLOBE NEWSWIRE) -- Fossil Group, Inc. (NASDAQ: FOSL) today announced financial results for the fiscal second quarter ended June 29, 2024. Second Quarter Summary Second quarter worldwide net sales decreased to $260 million, down 19% on a reported basis and 18% in constant currency, which includes five points of negative impact related to the Company's strategic actions to exit the sm ...

RICHARDSON, Texas, July 25, 2024 (GLOBE NEWSWIRE) -- Fossil Group, Inc. (NASDAQ: FOSL) announced today that it will report second quarter 2024 financial results after market close on Thursday, August 8, 2024, followed by a conference call to discuss the results at 5:00 p.m. ET the same day. The call can be accessed live on the Company's investor relations website at www.fossilgroup.com/investors and will also be archived for replay. About Fossil Group, Inc. Fossil Group, Inc. is a global design, marketing, ...