Fossil Group (NASDAQ:FOSL) Issues Earnings Results

Fossil Group (NASDAQ:FOSL) announced its earnings results on Wednesday. The accessories brand company reported ($0.13) earnings per share (EPS) for the quarter, beating the consensus estimate of ($0.29) by $0.16, FiscalAI reports. Fossil Group had a negative net margin of 7.09% and a negative return on equity of 57.29%. The business had revenue of $209.69 million during the quarter, compared to analyst estimates 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 Price Performance

Shares of Fossil Group stock opened at $5.58 on Friday. The stock has a market cap of $329.78 million, a P/E ratio of -4.36 and a beta of 1.62. The company has a debt-to-equity ratio of 2.32, a quick ratio of 1.10 and a current ratio of 1.72. The stock’s fifty day moving average is $4.46 and its 200 day moving average is $4.39. Fossil Group has a one year low of $1.70 and a one year high of $6.25.

Wall Street Analyst Weigh In

A number of equities analysts have commented on the company. Northland Securities set a $8.00 price target on Fossil Group in a research note on Thursday. Wall Street Zen upgraded shares of Fossil Group from a “sell” rating to a “hold” rating in a report on Saturday, May 16th. Finally, Weiss Ratings reiterated a “sell (d-)” rating on shares of Fossil Group in a report on Friday, July 17th. Two equities research analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat.com, Fossil Group has a consensus rating of “Hold” and a consensus price target of $7.50.

Insider Activity at Fossil Group

In related news, Director Wendy Lee Schoppert acquired 24,331 shares of the stock in a transaction dated Monday, May 18th. The shares were purchased at an average cost of $4.14 per share, with a total value of $100,730.34. Following the transaction, the director directly owned 120,625 shares in the company, 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 SEC, which is accessible through this hyperlink. 2.90% of the stock is owned by company insiders.

Hedge Funds Weigh In On Fossil Group

Hedge funds have recently modified their holdings of the company. Wexford Capital LP bought a new position in Fossil Group in the 3rd quarter worth $28,000. Qube Research & Technologies Ltd bought a new position in shares of Fossil Group in the third quarter worth about $39,000. Texas Capital Bank Wealth Management Services Inc purchased a new stake in shares of Fossil Group during the third quarter worth about $45,000. Jane Street Group LLC grew its position in shares of Fossil Group by 93.1% during the first quarter. Jane Street Group LLC now owns 42,584 shares of the accessories brand company’s stock worth $49,000 after purchasing an additional 20,530 shares in the last quarter. Finally, Schonfeld Strategic Advisors LLC bought a new stake in Fossil Group during the 4th quarter valued at approximately $63,000. 61.14% of the stock is currently 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.