The US accessories Fossil Group achieved net sales of $ 342 million (315 million euros) in the fourth quarter. This corresponded to a decline of 19 percent compared to the same period last year, which resulted from losses in all regions and sales channels. The operating result was $ 20.1 million (18.5 million euros) or 5.9 percent of net sales. The profit per share was 39 US cent.
In response to these results, the Fossil Group implemented a comprehensive turnaround plan. This plan includes a reduction in the workforce at the company’s headquarters, which was carried out at the end of February, as well as cost reductions through cooperation with sales partners in smaller international markets and the closure of around 50 shops.
In addition, the Randy Greben company appointed Chief Financial Officer (CFO) with effect from March 17th. He replaces Interims-CFO Andrew Skobe and will lead the turnaround efforts.
The Fossil Group is aiming for net turnover of over $ 800 million by the 2027 financial year, an operative margin in the middle single-digit percentage and a positive free cash flow adjusted to special effects.
“We are pleased that we completed the year with a fourth quarter in which the results were about expectations. We were able to achieve an adjusted operating profit of $ 20 million because our initiatives have started driving, ”said CEO Franco Fogliato.
The Fossil Group reports negative final quarter
A breakdown of the results of the fourth quarter shows significant regional losses. The company’s net turnover fell by 21 percent in Europe, 18 percent in America and 13 percent in Asia compared to the same period last year. Wholesale sales decreased by 10 percent, while the proceeds in their own retail shrinked by 27 percent. They dropped by 20 percent on a comparable basis.
In the case of product categories, sales with traditional watches decreased by 10 percent and 37 percent with leather goods. In the jewelry category, the minus was 19 percent. Most of the group brands also had to accept losses in the fourth quarter. The sales of the Fossil brand dropped by 20 percent in particular due to declines in leather goods and smartwatches, while sales with traditional watches decreased slightly in the fourth quarter of 2024.
Randy Greben becomes new CFO
In order to promote the financial aspects of the turnaround, the Fossil Group Randy Greben has appointed the new CFO. He will be responsible for the company’s global financial strategy and will concentrate on the management of the financial turnaround and corporate transformation.
Greben brings extensive experience from his previous positions. Most recently, he was Chief Financial and Operating Officer at Casper Sleep, where he strengthened the balance, led the sale of the Canadian business of the company and significantly reduced the costs.
Before that, he worked as a CFO and treasurer at Blue Apron and held leading financial positions with Ann Inc. At the beginning of his career, Greben was CFO and General Manager at Quidsi, a subsidiary of Amazon.com.
“Randy is a proven manager and an advocate of changes. His appointment will bring our team an enormous added value while we pursue our turnaround plan and concentrate on the added value for all of our stakeholders, ”said Fogliato.
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