Fossil Group(US:FOSL)2025-11-13 21:03Financial Performance - Worldwide net sales for Q3 2025 totaled $270.2 million, a decrease of 6.1% from $287.8 million in Q3 2024[5]. - Operating loss for Q3 2025 was $22 million, with an operating margin of (8.0)%, compared to an operating loss of $24.5 million and an operating margin of (8.5)% in Q3 2024[2][8]. - Gross profit for Q3 2025 was $132.4 million, down 6.9% from $142.2 million in Q3 2024, resulting in a gross margin of 49.0%[5][19]. - Adjusted net loss for Q3 2025 was $32.8 million, with an adjusted net loss per diluted share of $0.63, compared to an adjusted net loss of $30.0 million and $0.56 per diluted share in Q3 2024[8]. - The company expects worldwide net sales to decline in the mid-teens for the full year 2025[15]. - Adjusted EBITDA for the fiscal year 2025 totaled $24.2 million, compared to a loss of $39.6 million in fiscal year 2024[24][25]. - For the 13 weeks ended October 4, 2025, the net income attributable to Fossil Group, Inc. was $(39.9) million, resulting in a diluted loss per share of $(0.76)[26]. - For the 40 weeks ended October 4, 2025, the net income attributable to Fossil Group, Inc. was $(59.7) million, with a diluted loss per share of $(1.13)[27]. Sales and Market Performance - Direct to consumer sales decreased by 27% in Q3 2025, with comparable retail sales declining by 22%[5]. - Americas segment net sales decreased from $121.3 million to $109.7 million, a decline of approximately 9.8%[22]. - The company reported a net sales increase in the Asia segment from $69.0 million to $70.2 million, an increase of approximately 1.7%[22]. - Total net sales for the 13 weeks ended October 4, 2025, were $270.2 million, down 6.1% from $287.8 million in the same period the previous year[22]. Financial Position and Liquidity - Total liquidity as of October 4, 2025, was $101.9 million, including $79.2 million in cash and cash equivalents[7]. - Total assets decreased from $812.4 million in September 2024 to $701.0 million in October 2025, a decline of approximately 13.7%[20]. - Total current assets fell from $575.9 million to $471.1 million, representing a decrease of about 18.2%[20]. - Long-term debt slightly decreased from $173.4 million in September 2024 to $169.1 million in October 2025, a reduction of about 1.8%[20]. - Stockholders' equity dropped significantly from $161.9 million to $96.1 million, a decrease of approximately 40.5%[20]. - Total liabilities decreased from $650.5 million to $604.9 million, reflecting a decline of about 7.0%[20]. Restructuring and Operational Changes - The company has completed a balance sheet transformation, significantly strengthening its financial position[2][4]. - The company experienced a restructuring expense of $58.1 million in fiscal year 2025, compared to $47.1 million in fiscal year 2024[24]. - The total store count decreased from 251 stores on September 28, 2024, to 204 stores on October 4, 2025, with significant closures in the Americas and Europe[28]. Other Financial Metrics - The company reported an interest expense of $(13.0) million for the 40 weeks ended October 4, 2025[27]. - The provision for income taxes for the 40 weeks was $17.6 million, indicating a tax burden despite the net loss[27]. - The operating income for the same period was $(21.7) million, with an operating margin of (8.0)% of net sales[26]. - The operating income for the 40 weeks was $(19.9) million, reflecting an operating margin of (2.7)% of net sales[27]. - The company experienced a loss before income taxes of $(42.4) million for the 40 weeks ended October 4, 2025[27]. - The company recorded a loss on extinguishment of debt of $(11.5) million for the 40 weeks ended October 4, 2025[27].