According to Chief Executive Officer (CEO) Franco Fogliato, the watch specialist Fossil Group has progressed for another quarter as part of its ongoing renovation plan.
Fogliato’s comments come, even though the company has a drop in sales of 8.5 percent for the quarter ending on April 5, 2025. This corresponds to net sales of $ 233.3 million, a decline that “mainly due to the general category, the consumers: inside and sewer weakness”.
However, Fogliato noted that this reflects a trend towards lower sales over a certain period of time. His trust was further strengthened by an increase in gross profit to $ 143 million and an increase in gross profit margin by 890 basis points to 61.3 percent compared to 52.4 percent in the same period of the previous year. Fossil led the recent exit from the smartwatch category as one of the beneficiaries in this regard.
The group’s losses also decreased. The operational loss dropped from $ 29.2 million to $ 6.7 million in the reporting period. The company’s adjusted result before interest, taxes and depreciation (EBITDA) in the meantime was $ 9.1 million compared to a loss of $ 10.7 million in the previous year. The lust of net loss fell from $ 24.2 million to $ 17.6 million.
‘Diverse global presence limits our tarrasis’
With regard to the business areas, the direct sales (D2C) recorded the strongest decline in the year with 24 percent, while wholesale recorded an increase of 6 percent. The decline in the D2C area is mainly due to a decline in comparable retail sales by 22 percent. Leather was the lowest sales category with a decline in sales of 37 percent. This was followed by jewelry, whose sales decreased by 13 percent.
Although some problems were addressed, Fogliato confirmed that the fossil group’s renovation strategies “gain tensile force and fuel the dynamics in our business despite the difficult macroeconomic environment”. “In particular, our diverse global presence limits our tarimeno, and we have a number of levers and mitigilitation strategies, which are expected to help compensate for the effects and to protect our healthy gross margin profile in 2025,” he added.
With regard to the future, Fogliato said that due to the strong performance in the first quarter, he was convinced that the group is “on the right track to achieve long -term profitable growth”. Therefore, Fossil confirmed his financial forecast for the year 2025, which includes the consideration of closures of retail transactions, which are according to the information with $ 45 million on global net turnover and bring it into the medium to high tenant area. The adjusted operational profit margin is expected to be in the low single -digit negative range.
This article was used with digital tools translated.
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