Financial Performance - Fourth quarter worldwide net sales were $342 million, down 19% on a reported basis and 18% in constant currency compared to $421.3 million in Q4 2023[5]. - Full year 2024 net sales totaled $1.1 billion, a decrease of 18.9% on a reported basis compared to $1.4 billion in 2023[12]. - For the 13 weeks ended December 28, 2024, net sales were $342.3 million, a decrease of 18.7% compared to $421.3 million for the same period in 2023[21]. - The Americas segment reported net sales of $164.2 million for the 13 weeks ended December 28, 2024, down from $203.7 million in the prior year[24]. Profitability and Loss - Fourth quarter adjusted operating income was $20.1 million, or 5.9% of net sales, compared to an adjusted operating loss of $8.5 million in Q4 2023[12]. - Full year 2024 net loss totaled $102.7 million with loss per diluted share of $1.94, compared to a net loss of $157.0 million and loss per diluted share of $3.00 in the prior year[16]. - Operating income for the 13 weeks ended December 28, 2024, was a loss of $16.3 million, compared to a loss of $24.0 million for the same period in 2023[21]. - Fiscal 2024 total income (loss) before income taxes was $(118.1) million, compared to $(156.1) million in Fiscal 2023, showing an improvement of 24.4%[27]. - Adjusted EBITDA for Fiscal 2024 was $(11.6) million, while Fiscal 2023 reported $(62.6) million, indicating a significant improvement[27]. - Operating income (loss) for the 52 weeks ended December 28, 2024, was $(34.3) million, compared to $(92.0) million for the same period in 2023, reflecting a 62.7% improvement[30]. - The company reported a diluted earnings (loss) per share of $(1.94) for the 52 weeks ended December 28, 2024, compared to $(3.00) for the same period in 2023, indicating a reduction in losses[30]. Cost Management and Savings - The company expects SG&A savings of approximately $100 million in 2025 versus 2024, driven by workforce reduction and store closures[6]. - The company incurred restructuring expenses totaling $59.8 million in Fiscal 2024, compared to $43.3 million in Fiscal 2023[27]. - Interest expense for Fiscal 2024 was $19.0 million, slightly lower than $21.8 million in Fiscal 2023[27]. Inventory and Assets - Inventory at year-end was $178.6 million, representing a decrease of 29.4% versus a year ago[5]. - Total current assets decreased to $554.5 million in 2024 from $710.7 million in 2023, primarily due to a reduction in inventories[22]. - Total assets decreased to $763.6 million in 2024 from $978.0 million in 2023, reflecting a decline in both current and long-term assets[22]. Future Outlook - The company anticipates worldwide net sales decline in the range of mid to high teens for 2025[17]. - Adjusted operating income margin for 2025 is expected to be in the negative low single digits[17]. - The company is focusing on enhancing its product offerings, particularly in smartwatches, which saw a notable increase in sales[24]. - The company plans to continue its market expansion efforts despite the store closures, focusing on strategic locations and new product development[31]. Store Operations - The total number of stores decreased from 302 on December 30, 2023, to 248 on December 28, 2024, with 59 stores closed during the year[31]. - The Americas region saw a reduction of 29 stores, ending with 114 stores by December 28, 2024[31]. Margin Improvement - Fourth quarter gross margin expanded 630 basis points to 53.9% due to improved product margins and exit from the smartwatch category[5]. - Gross profit for the 13 weeks ended December 28, 2024, was $184.6 million, resulting in a gross margin of 53.9%, up from 47.6% in the prior year[21]. - The operating margin for the 52 weeks ended December 28, 2024, was (3.0)%, an improvement from (10.1)% in the previous year[30].

Core Insights - Fossil Group, Inc. reported better-than-expected fourth quarter results, achieving an adjusted operating profit of $20 million, indicating that business performance improvement initiatives are gaining traction [4] - The company has introduced a comprehensive turnaround plan focusing on refocusing on core initiatives, rightsizing the cost structure, and strengthening the balance sheet [5] - For 2025, the company expects to achieve SG&A savings of approximately $100 million compared to 2024, alongside a strategic review of its business model and capital structure [5][6] Financial Performance - Fourth quarter worldwide net sales were $342 million, down 19% on a reported basis and 18% in constant currency, with declines across all regions and channels [6][10] - The fourth quarter gross margin expanded by 630 basis points to 53.9%, primarily due to improved product margins and the exit from the smartwatch category [6][10] - Fourth quarter SG&A expenses were $172.1 million, down 17% compared to the same quarter in 2023, reflecting efficiencies from the TAG Plan [6][10] - The company reported a fourth quarter operating loss of $16.3 million, with an adjusted operating income of $20.1 million, translating to an adjusted operating margin of 5.9% [6][10] Long-Term Financial Targets - For the full year 2027, the company aims for worldwide net sales exceeding $800 million and an adjusted operating income margin in the mid-single-digit range [9][18] - The company anticipates a continued decline in worldwide net sales in the mid to high teens for 2025, with an adjusted operating income margin expected to be in the negative low single digits [18] Balance Sheet and Liquidity - As of December 28, 2024, the company had total liquidity of $177 million, including cash and cash equivalents of $124 million [6][14] - Year-end inventory was $178.6 million, representing a decrease of 29.4% compared to the previous year [6][14] Strategic Initiatives - The turnaround plan includes launching a new FOSSIL brand platform, optimizing the global wholesale footprint, and closing approximately 50 retail stores [5] - The company is concluding its TAG Plan, which generated annualized operating income benefits of $280 million over two years [5]

Group 1 - Fossil Group, Inc. will report its fourth quarter and full year 2024 financial results on March 12, 2025, after market close [1] - A conference call to discuss the financial results will take place at 5:00 p.m. ET on the same day, accessible via the company's investor relations website [1] - The call will be archived for replay after the live session [1] Group 2 - Fossil Group, Inc. specializes in lifestyle accessories, including watches, jewelry, handbags, small leather goods, belts, and sunglasses [2] - The company operates a diverse portfolio of owned and licensed brands, such as Fossil, Michele, Relic, Skagen, Zodiac, Armani Exchange, Diesel, Emporio Armani, kate spade new york, Michael Kors, Skechers, and Tory Burch [2] - Fossil Group is committed to design and innovation, supported by an extensive distribution network across various geographies and channels [2]

Core Points - Fossil Group has extended its licensing agreement with Michael Kors until 2027, allowing Fossil to continue designing and innovating Michael Kors watches and jewelry [1][2] - The partnership has been valued by both companies, with Fossil Group's CEO expressing honor in the long-term relationship and looking forward to future opportunities [2] - Michael Kors' CEO also emphasized the importance of the partnership, highlighting Fossil Group as a valued collaborator for many years [2] Company Overview - Fossil Group, Inc. specializes in lifestyle accessories, including watches, jewelry, handbags, and more, under a diverse portfolio of owned and licensed brands [4] - The company is committed to delivering high-quality design and innovation across its brands, which include both owned brands like Fossil and licensed brands such as Michael Kors [4] - Michael Kors is a luxury designer brand known for its range of products, including accessories and ready-to-wear items, with a strong presence in prestigious cities and a robust digital platform [5]

Core Insights - Fossil Group has appointed Joe Martin as Chief Commercial Officer and Antonio Carriero as Chief Digital Information Officer and General Manager of EMEA, effective February 12 and February 17, respectively, to drive a business turnaround and return to profitable growth [1][2][5] Group 1: Leadership Appointments - Joe Martin will oversee all global revenue-generating activities, focusing on building a scalable, high-performing commercial organization, with a strong background in sales and operations from Adidas and 3M [2][3] - Antonio Carriero will manage the global technology strategy, operations, and cybersecurity, while also leading the commercial business for the EMEA region, bringing extensive experience in digital transformation from his previous roles at Salomon, Breitling SA, and Richemont Group [4][5] Group 2: Strategic Focus - The appointments are part of Fossil's strategy to enhance its watch business and create long-term value for stakeholders, emphasizing the importance of sustainable, long-term results [5] - Both leaders are expected to leverage their expertise to advance Fossil's turnaround strategy and drive growth in the luxury and consumer goods sectors [5][6]

Core Insights - The event "Macroeconomics and Climate" focused on aligning economic systems with environmental sustainability amidst climate change and economic instability [1][2] - EBC Financial Group's involvement highlights the urgency of integrating financial markets with academic research to tackle climate and economic challenges [4] Group 1: Event Overview - The session featured a keynote by Associate Professor Andrea Chiavari and a panel discussion moderated by Associate Professor Banu Demir Pakel, discussing the balance between economic growth and climate resilience [2][5] - Panellists included experts from the Environmental Change Institute and EBC Financial Group, providing practical insights on policy, finance, and societal impact [2][8] Group 2: Economic and Environmental Interplay - Dr. Chiavari emphasized the economic costs of climate change, linking the growth of global GDP since the industrial revolution to the environmental toll of fossil fuel consumption [5][6] - The concept of the social cost of carbon was highlighted as essential for shaping effective policies, advocating for carbon taxation as both an environmental and economic necessity [7][16] Group 3: Opportunities and Challenges - Dr. Ranger pointed out that climate action presents economic opportunities, such as job creation and growth, while advocating for redirecting fossil fuel subsidies, estimated at $5 to $7 trillion annually, towards green investments [10][18] - Barrett discussed the need for aligning market incentives with sustainability goals, stressing that financial markets require enforceable regulatory frameworks to drive meaningful climate action [11][19] Group 4: Role of Governments and Individuals - Dr. Demir Pakel stressed the importance of government-led education and awareness initiatives to drive climate action, highlighting the need for policies that incentivize both the private sector and consumer behavior [15][16] - The panelists collectively called for a shift in public narrative to emphasize the economic benefits of climate action, urging governments to lead this change [17][20]

Core Insights - The article does not provide specific insights or analysis regarding any companies or industries, focusing instead on disclaimers and disclosures [1][2] Company and Industry Analysis - No relevant company or industry content is present in the provided documents [1][2]

Financial Data and Key Metrics Changes - Third quarter net sales totaled $288 million, down 16% in constant currency, with 600 basis points of the decline attributable to the smartwatch exit and store closures [25][24] - Gross margin expanded 240 basis points year-over-year to 49.4%, primarily due to the exit of connected products and benefits from retail pricing and promotional initiatives [27][24] - SG&A expenses decreased by $31 million to $161 million, representing a 16% reduction, driven by lower store operating costs and decreased marketing spend [28][24] - Adjusted operating loss narrowed to $19 million, reflecting a 39% improvement compared to the adjusted operating loss of $31 million last year [30][24] - Total liquidity at the end of the quarter was $130 million, including $106 million in cash and cash equivalents [32][24] Business Line Data and Key Metrics Changes - Traditional watches declined 4% globally on a comp basis in Q3, while India saw an increase of about 10%, excluding connected products [25][24] - Selected licensed brands such as Armani Exchange, SKECHERS, and Tory Burch showed strength, while larger licensed watch brands faced challenges [26][24] Market Data and Key Metrics Changes - The company closed seven stores, ending the quarter with 251 stores, a 17% reduction compared to a year ago, with expectations to close up to 58 by year-end [29][24] - Inventory levels decreased by 30% compared to a year ago, aligning with expectations [32][24] Company Strategy and Development Direction - The company is prioritizing three key areas: redefining and focusing on its core business, rightsizing the business, and strengthening the balance sheet [15][21][22] - A new brand platform is being developed to reignite consumer connection and cultural relevance, supported by a strong innovation pipeline and marketing [19][24] - The company plans to rebuild relationships with wholesale partners and strengthen its digital business for more profitable operations [20][24] Management's Comments on Operating Environment and Future Outlook - Management expressed a strong sense of urgency to execute the turnaround and create value for shareholders, with a commitment to moving swiftly [22][37] - The company expects to achieve at least $100 million of annualized P&L benefits in 2024 across margin and SG&A under the TAG Plan [36][24] - Guidance for worldwide net sales is revised to approximately $1.1 billion, with an adjusted operating margin loss expected to range from negative 6% to negative 8% [35][24] Other Important Information - The company completed the sale of its building in France, generating approximately $8 million in net proceeds, and is progressing towards a sale leaseback of its distribution center in Germany [33][24] - Restructuring costs related to the TAG plan are estimated to be approximately $40 million for the full year of 2024 [36][24] Q&A Session Summary - The Q&A session did not contain any specific questions or answers as the call concluded without further inquiries [38]

For the third quarter of 2024, Fossil Group, Inc. (FOSL) incurred an adjusted net loss per share of 51 cents, narrower than the adjusted loss of 93 cents per share in the prior-year period. Revenues totaled $287.8 million, reflecting a 16.4% decrease from $344.1 million a year ago. This was largely driven by weakness across categories and channels, and by strategic moves such as exiting the smartwatch segment and closing certain retail locations, which impacted revenue by six percentage points. Fossil's qua ...

Exhibit 99.1 FOSSIL GROUP, INC. REPORTS THIRD QUARTER 2024 FINANCIAL RESULTS Remains On Track to Achieve at Least $100 Million of Annualized Savings in 2024 Under TAG Plan Updates Full Year Outlook Richardson, TX, November 7, 2024 (GLOBE NEWSWIRE) - Fossil Group, Inc. (NASDAQ: FOSL) today announced financial results for the fiscal third quarter ended September 28, 2024. Third Quarter Summary • Third quarter worldwide net sales decreased to $288 million, down 16% on both a reported and constant currency basi ...