Fossil Group (NASDAQ:FOSL) Releases Quarterly Earnings Results, Beats Expectations By $0.16 EPS

Fossil Group (NASDAQ:FOSL) announced its quarterly earnings data on Wednesday. The accessories brand company reported ($0.13) earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.29) by $0.16, FiscalAI reports. Fossil Group had a negative net margin of 6.19% and a negative return on equity of 48.51%. The business had revenue of $209.70 million for the quarter, compared to the consensus estimate of $199.33 million.

Here are the key takeaways from Fossil Group’s conference call:

• Q2 adjusted operating income doubled to $8.6 million, supported by a 490-basis-point gross-margin expansion to 62.4%, full-price selling, lower tariffs, and disciplined cost management.
• Net sales declined 4% to $211 million, but trends improved across the Americas and Asia, including mid-single-digit U.S. growth, 4% Asia growth, and double-digit growth in India; traditional Fossil watches grew 12% globally in wholesale.
• Management raised full-year guidance, now expecting sales to decline 3%-5% versus the prior 4%-6% range, adjusted operating margin of 4%-6%, a return to consolidated revenue growth in Q4, and positive full-year free cash flow.
• Fossil plans to support growth with new products and marketing, including the premium Swiss-made Signature collection and the Machine X1 launch, while continuing store optimization and operating-model changes.
• EMEA remains pressured by geopolitical conditions in the Middle East, weaker travel retail, and recent business-model transitions, partially offsetting stronger performance in the U.S. and India.

Fossil Group Stock Performance

Shares of FOSL traded up $0.03 on Wednesday, reaching $5.27. 1,134,683 shares of the stock traded hands, compared to its average volume of 809,223. The stock’s 50-day moving average price is $4.41 and its 200-day moving average price is $4.37. The company has a debt-to-equity ratio of 2.32, a current ratio of 1.72 and a quick ratio of 1.10. The firm has a market cap of $311.47 million, a price-to-earnings ratio of -4.62 and a beta of 1.62. Fossil Group has a 12 month low of $1.70 and a 12 month high of $6.16.

Analysts Set New Price Targets

A number of analysts have weighed in on the stock. Weiss Ratings reissued a “sell (d-)” rating on shares of Fossil Group in a report on Friday, July 17th. Wall Street Zen upgraded shares of Fossil Group from a “sell” rating to a “hold” rating in a research note on Saturday, May 16th. Two investment analysts have rated the stock with a Buy rating, one has given a Hold rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat, the stock currently has a consensus rating of “Hold” and a consensus price target of $7.00.

Insider Buying and Selling

In other Fossil Group news, Director Wendy Lee Schoppert purchased 24,331 shares of the firm’s stock in a transaction on Monday, May 18th. The shares were purchased at an average price of $4.14 per share, for a total transaction of $100,730.34. Following the completion of the purchase, the director directly owned 120,625 shares of the company’s stock, valued at approximately $499,387.50. This represents a 25.27% increase in their ownership of the stock. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. 2.90% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Fossil Group

A number of hedge funds and other institutional investors have recently made changes to their positions in the business. Wexford Capital LP bought a new stake in Fossil Group in the third quarter valued at about $28,000. Qube Research & Technologies Ltd bought a new position in Fossil Group during the third quarter worth about $39,000. Schonfeld Strategic Advisors LLC bought a new position in Fossil Group during the fourth quarter worth about $63,000. Texas Capital Bank Wealth Management Services Inc acquired a new stake in Fossil Group during the third quarter valued at approximately $45,000. Finally, Mangrove Partners IM LLC acquired a new stake in Fossil Group during the fourth quarter valued at approximately $66,000. 61.14% of the stock is owned by institutional investors.

Fossil Group Company Profile

Fossil Group, Inc designs, develops, markets and distributes consumer fashion accessories, focusing on lifestyle and wearable technology. The company offers a wide range of products including analog and digital watches, smartwatches, jewelry, handbags, small leather goods and wearable devices. It sells merchandise under its own Fossil brand and via license agreements with international labels such as Michael Kors, Armani Exchange, Burberry, Diesel, DKNY, Kate Spade and Tory Burch. Through its proprietary e-commerce platforms and global retail network, Fossil Group serves markets across North America, Europe, Asia and the Middle East.

The group’s wearable technology segment combines traditional timepieces with features such as fitness tracking, heart-rate monitoring and NFC payments.