The American watch and accessories provider Fossil Group Inc. presented its results for the second quarter of the 2025 financial year on Wednesday. The company recorded the third quarter in a row with a positive adjusted operating result. It also revealed a comprehensive refinancing plan to strengthen its balance sheet and improve liquidity.
In the second quarter, which was completed on July 5, net sales were $ 220.4 million (203.2 million euros). This corresponds to a decline of 15.2 percent compared to the same period last year. According to the company, the losses were due to the general weakening of the market, consumer demand and retail channels.
Despite the decline in sales, the gross profit was $ 126.7 million (116.7 million euros). The gross margin improved significantly by 4.9 percentage points to 57.5 percent. It was due to the increase to higher product margins, reduced freight costs and the exit from the smartwatch business.
The net loss for the quarter decreased to $ 2.3 million (2.1 million euros), and the shortfall decreased to $ 5.6 million. In the second quarter of the previous year, the loss was $ 25.1 million.
Franco Fogliato, the CEO of Fossil, was satisfied with the “above -average performance and the continuing dynamics” of the company. The results are proof of the strength of the turnaround plan.
Operating costs were reduced by $ 118.2 million, which contributed to an operating result of $ 8.5 million. This was a significant improvement compared to an operational loss of $ 34 million in the second quarter of 2024. The adjusted operating result was $ 3.8 million after an adjusted operational loss of $ 17 million was recorded in the same period in the previous year.
In view of the positive results, the Fossil Group increased its forecasts for the year 2025. The company now expects a decline in global net turnover in the middle ten percent area and a balanced to slightly positive operational margin. The group plans to concentrate on brand education initiatives. He prepares the start of a global campaign with his brand ambassador Nick Jonas in the second half of the year.
This article was used with digital tools translated.
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