Fossil Group, Inc. ( (FOSL) ) has released its Q1 earnings. Here is a breakdown of the information Fossil Group, Inc. presented to its investors.
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Fossil Group, Inc. is a global company specializing in the design, marketing, and distribution of lifestyle accessories, including watches, jewelry, handbags, and other fashion items, operating under both owned and licensed brands.
In its first quarter of 2025 financial results, Fossil Group reported net sales of $233 million, with a gross margin expansion to 61.3%. Despite an operating loss of $7 million, the company achieved a constant currency adjusted operating income of $10 million.
Key financial highlights include an 8.5% decrease in net sales compared to the previous year, largely due to declines in smartwatch sales and store closures. However, the company saw a 2% increase in traditional watch sales and a significant improvement in gross margin by 890 basis points. Operating expenses decreased by 8%, and the company reported an adjusted EBITDA of $9.1 million.
Looking forward, Fossil Group remains committed to its turnaround plan, expecting to drive long-term profitable growth despite a challenging macroeconomic environment. The company reiterates its full-year guidance, anticipating a decline in net sales in the mid to high teens and an adjusted operating income margin in the negative low single digits.