Core Viewpoint - Fossil Group, Inc. has extended the expiration date for its Exchange Offer, Consent Solicitation, and Rights Offering related to its 7.00% Senior Notes due 2026 from October 15, 2025, to October 22, 2025, while proceeding with the UK Proceeding as scheduled [2][5][6] Exchange Offer and Consent Solicitation - The principal amount of Old Notes tendered in the Exchange Offer as of October 15, 2025, is $113,057,875, representing 75.37% of the total $150,000,000 [4] - The breakdown of the tendered amounts includes $106,870,250 from New Money participants (71.25%) and $6,187,625 from Non-New Money participants (4.13%) [4] UK Proceeding - A hearing on October 15, 2025, resulted in the approval for Fossil (UK) Global Services Ltd. to convene a meeting of Old Notes holders to vote on the UK Proceeding [5] - The Plan Meeting is scheduled for November 6, 2025, and requires a 75% majority by value of those present and voting for approval [6] Media Report Statement - The company acknowledges a media report regarding a potential IPO of a subsidiary in India but clarifies that it is not currently pursuing such an offering [7][8]

Core Insights - Fossil Group, Inc. (FOSL) shares have increased by 62.3% year to date, significantly outperforming the industry, which has seen a decline of 12.5% [1] - The company has outperformed competitors such as Urban Outfitters, Inc. (URBN) and Boot Barn Holdings, Inc. (BOOT), which recorded increases of 25.8% and 17% respectively [1] - Key factors contributing to Fossil's performance include improved liquidity through debt refinancing, operational efficiencies, cost controls, product innovation, and brand revitalization [1] Business Operations - Fossil is a global design and distribution company specializing in fashion accessories, including watches, jewelry, and handbags [3] - The company owns brands such as FOSSIL, SKAGEN, MICHELE, RELIC, and ZODIAC, and has licensed brands like MICHAEL KORS and ARMANI EXCHANGE [3] - In 2023, Fossil launched the Transform and Grow plan aimed at cutting costs and improving margins, targeting $280 million in annualized operating income benefits by 2024 [3] - The Turnaround Plan introduced in 2025 focuses on core product refocus, cost restructuring, and balance sheet strengthening [3] - Fossil operates across the Americas, Europe, and Asia, utilizing a multi-channel model that includes e-commerce, retail, and wholesale [3] Key Tailwinds - Fossil's strategic turnaround is built on three pillars: refocusing on the core business, tightening cost structures, and strengthening the balance sheet [4] - The company has implemented a comprehensive debt refinancing plan, enhancing liquidity and supporting long-term growth [4] - Fossil has secured a new $150 million revolving credit facility, increasing financial flexibility and reducing refinancing risks [4] Marketing and Consumer Engagement - The brand's marketing strategy has shifted towards high-impact campaigns featuring global icons, resulting in stronger consumer engagement [5] - Investments in influencer collaborations and pop-up events have increased product visibility and sales [5] - Traditional watches are experiencing a strong rebound in markets like India and the Americas, contributing to higher average unit retail prices [6] Operational Efficiencies - Fossil's cost control initiatives, including supply chain optimization and automation, are leading to margin improvements [7] - Strategic partnerships with suppliers and platform upgrades have significantly improved gross margins [7] - A renewed focus on channel profitability, particularly through e-commerce and European distribution, has yielded better returns [7] Product Innovation - The relaunch of traditional watch collections and new product lines like Neutra and Raquel is resonating well with consumers [8] - Management aims to reinvigorate core offerings while leveraging global license partners to drive growth [8] Challenges - Fossil faces sales weakness in key markets such as Europe and China, exposing the brand to macro volatility [9] - Heightened tariff risks and trade policy shifts threaten supply chain stability and margin resilience [9] - Competitive pressures from larger e-commerce players may force margin-diluting strategies [9] Valuation - Fossil is currently trading at 0.19X trailing 12-month EV/sales value, significantly below the industry average of 1.85X [10] - This valuation is lower than peers like Urban Outfitters (0.95X) and Boot Barn (2.68X), indicating a potential investment opportunity [10] Conclusion - The company's focus on strengthening its balance sheet, streamlining operations, and revitalizing its core watch business enhances financial flexibility [11] - With improving liquidity and strong brand momentum, Fossil is positioned to deliver operational resilience and improved shareholder value [11] - Strong fundamentals and undervaluation present a lucrative opportunity for investors [13]

Core Viewpoint - Fossil Group, Inc. is initiating a restructuring plan under UK law for its 7.00% Senior Notes due 2026, with a Convening Hearing scheduled for October 15, 2025, to seek approval from Plan Creditors [1][3]. Group 1: Restructuring Plan Details - The restructuring plan was announced on September 23, 2025, and involves the issuance of a practice statement letter [1]. - The Convening Hearing will take place at The High Court of Justice in London, starting at 10:00 a.m. London time [1][2]. - The Plan Company aims to convene a single class meeting of Plan Creditors to consider and potentially approve the Restructuring Plan [3]. Group 2: Participation and Representation - Plan Creditors have the right to attend the Convening Hearing and make representations to the Court [4]. - Creditors wishing to participate should contact Epiq Corporate Restructuring, LLC, or the Court, providing their details and those of their counsel if applicable [5]. - Retail Noteholders are encouraged to reach out to the independent representative for assistance regarding their claims and the Restructuring Plan [6]. Group 3: Additional Information - The Company has filed registration statements with the SEC related to the Restructuring Plan, and creditors are advised to review the prospectus for comprehensive information [8]. - Additional documents related to the Restructuring Plan can be accessed for free via the SEC's website [9]. - Fossil Group, Inc. specializes in lifestyle accessories, including watches, jewelry, and handbags, and operates under various owned and licensed brands [10].

Core Points - Fossil Group, Inc. has extended the expiration date for its Exchange Offer, Consent Solicitation, and Rights Offering from October 7, 2025, to October 15, 2025 [1] - The company plans to proceed with the UK Proceeding as previously scheduled, including a Convening Hearing on October 15, 2025 [1] - The principal amount of Old Notes tendered in the Exchange Offer is $107,920,500, representing 71.95% of the total $150,000,000 outstanding [2][3] Exchange Offer Details - The Exchange Offer includes 7.00% Senior Notes due 2026, with $102,078,075 tendered by New Money Participants, accounting for 68.05% of the total [3] - Non-New Money Participants tendered $5,842,425, which is 3.90% of the total [3] - The company reserves the right to terminate, withdraw, amend, or further extend the Exchange Offer, Consent Solicitation, and Rights Offering independently at any time [1] Registration Statements - Fossil Group has filed registration statements on Form S-3 and Form S-4 with the SEC in connection with the Exchange Offer, Consent Solicitation, and Rights Offering [3] - Investors are encouraged to read the prospectus dated September 25, 2025, for complete information about the company and the offerings [3]

Group 1: LVMH Performance - LVMH reported H1 2025 revenue of €39.81 billion (approximately $46.6 billion), a 4% decrease from €41.68 billion in the same period last year [3] - Operating profit fell to €9.01 billion, down 15% from €10.65 billion year-on-year [3] - Net profit decreased by 22% to €5.70 billion from €7.27 billion in the previous year [3] Group 2: Richemont Performance - Richemont's total sales for Q1 2025 reached €5.41 billion (approximately $6.33 billion), up from €5.27 billion year-on-year [4] - Jewelry sales increased to €3.91 billion from €3.66 billion, while watch sales decreased to €0.82 billion from €0.91 billion [4] Group 3: Hermès Performance - Hermès reported H1 2025 revenue of €8.03 billion (approximately $9.4 billion), an increase from €7.50 billion in the same period last year [5] - Operating profit rose to €3.33 billion from €3.15 billion year-on-year [5] - Net profit for the group was €2.25 billion, down from €2.37 billion in the previous year [5] Group 4: Kering Performance - Kering's H1 2025 revenue was €7.59 billion (approximately $8.8 billion), down from €9.02 billion year-on-year [6] - Operating profit decreased to €1.00 billion from €1.57 billion [6] - Net profit attributable to the group fell to €0.47 billion from €0.88 billion [6][7] Group 5: EssilorLuxottica Performance - EssilorLuxottica reported adjusted revenue of €14.02 billion for H1 2025, up from €13.29 billion year-on-year [8] - Adjusted operating profit increased to €2.53 billion from €2.43 billion [8] - Adjusted net profit rose to €1.80 billion from €1.75 billion [8] Group 6: Other Companies Performance - Lao Feng Xiang reported H1 2025 revenue of ¥33.36 billion (approximately $4.68 billion), a 16.52% decrease year-on-year [9] - PVH Corp. reported Q2 2025 revenue of $2.17 billion, up from $2.07 billion year-on-year [10] - Swatch Group's H1 2025 net sales were CHF 3.06 billion (approximately $3.83 billion), down 11.2% from the previous year [11] - Tapestry reported Q4 2025 net sales of $1.72 billion, up from $1.59 billion year-on-year [12] - Ralph Lauren's Q1 2025 net sales were $1.72 billion, up from $1.51 billion [13] - Prada Group reported H1 2025 revenue of €2.74 billion (approximately $3.21 billion), an 8% increase year-on-year [15] - Signet Jewelers reported Q2 2025 sales of $1.54 billion, up from $1.49 billion year-on-year [16] - Puig reported H1 2025 revenue of €2.30 billion (approximately $2.69 billion), a 5.9% increase year-on-year [17] - Hugo Boss reported H1 2025 sales of €2.00 billion (approximately $2.34 billion), down from €2.03 billion [18] - Pandora reported Q2 2025 revenue of DKK 7.07 billion (approximately $1.11 billion), up from DKK 6.77 billion [19] - Capri Holdings reported Q1 2025 revenue of $797 million, down from $848 million [20] - Burberry reported Q1 2025 retail revenue of £433 million (approximately $586 million), down 6% year-on-year [21] - Ermenegildo Zegna Group reported H1 2025 revenue of €0.93 billion (approximately $1.09 billion), down from €0.96 billion [23] - Zhou Dasheng reported H1 2025 revenue of ¥4.60 billion (approximately $645 million), a 43.92% decrease year-on-year [24] - Salvatore Ferragamo reported H1 2025 revenue of €0.47 billion (approximately $0.55 billion), down 9.4% year-on-year [25] - Fossil Group reported Q2 2025 net sales of $220 million, down from $260 million [26]

Core Points - Fossil Group, Inc. has initiated an exchange offer to swap its outstanding 7.00% Senior Notes due 2026 for new notes and warrants, with different terms for participants in the New Money Financing and those who do not participate [1][2][3] - The company is also soliciting consent from note holders for proposed amendments to the indenture governing the Old Notes, which includes modifications to covenants and events of default [2][3] - A rights offering is being launched concurrently, allowing holders to purchase new First-Out Notes and receive shares of Common Stock based on their subscription [5][6] Exchange Offer - The exchange offer allows holders to exchange Old Notes for either 9.500% First-Out Notes or 7.500% Second-Out Notes, depending on their participation in the New Money Financing [1][8] - Holders who participate will also receive pro rata portions of Initial Public Warrants [1][8] - The exchange offer will expire at 5:00 PM New York City time on October 7, 2025, with potential extensions based on the effectiveness of registration statements [10] Consent Solicitation - The consent solicitation seeks approval for amendments to the Old Notes Indenture, including the removal of certain covenants and the subordination of Old Notes to New Notes [2][9] - Holders who tender their Old Notes will be deemed to have consented to these amendments and appointed a proxy for a potential UK Proceeding [3][9] Rights Offering - The rights offering provides holders with Subscription Rights to purchase First-Out Notes at 100% of their face value, with a share of Common Stock for every $34.06 of First-Out Notes purchased [5][6] - A total of $12,941,327 of First-Out Notes will be offered to non-supporting holders, while $19,558,673 will be allocated to supporting holders [6] Supporting Holders - Supporting Holders, who hold approximately 60% of the Old Notes, have agreed to participate in the New Money Financing and support the proposed amendments and UK Proceeding [12] - They will exchange their Old Notes for new First-Out Notes and have committed to purchasing additional notes if not all holders participate in the rights offering [12]

Core Insights - The article discusses the watch brand Fossil Group, Inc. (NASDAQ: FOSL) and highlights the company's struggles with declining sales and resulting losses [1]. Company Overview - Fossil Group has not been covered in detail for two years due to its poor financial performance, specifically falling sales [1]. Industry Context - The article mentions the broader context of investment management and the green economy, indicating a shift in focus towards sustainable investment opportunities [1].

Core Viewpoint - Fossil Group, Inc. has experienced a significant stock surge of 76.6% following its latest quarterly earnings release, reflecting investor optimism regarding the company's turnaround progress and financial outlook [1] Financial Performance - In Q2 2025, Fossil reported an adjusted net loss of $0.10 per share, an improvement from a loss of $0.47 per share in the same quarter last year [2] - Net sales were $220.4 million, representing a 15.2% decline from $260 million in the prior-year period, primarily due to softness across product categories and the exit from the smartwatch segment [3] - Gross profit was $126.7 million, down 7.4% year over year, but gross margin expanded by 490 basis points to 57.5% from 52.6% a year ago [4] - Operating income reached $8.5 million, a significant improvement from a $34 million loss in Q2 2024, with adjusted operating income at $3.8 million compared to an adjusted operating loss of $17 million a year earlier [5] Business Metrics - Sales declines were broad-based, with revenues falling 19% in the Americas, 14% in Europe, and 12% in Asia on a constant-currency basis [6] - The company closed 47 stores over the past year, reducing its global store count to 214 from 258, and inventories decreased by 11.9% year over year to $178.1 million [7] Management Commentary - CEO Franco Fogliato noted the quarter marked the third consecutive period of positive adjusted operating income, highlighting cost control and gross margin strength as key achievements [8] - Management emphasized upcoming marketing investments and new product launches in the second half of 2025 to strengthen brand positioning [9] Factors Influencing Results - Margin improvements were driven by sourcing initiatives, reduced freight costs, and exiting the lower-margin smartwatch business, with selling, general, and administrative expenses falling nearly 28% year over year [10] - Consumer demand remained pressured, with challenges in retail traffic and category headwinds acknowledged by management [11] Guidance - Fossil raised its full-year 2025 outlook, now expecting worldwide net sales to decline in the mid-teens, an improvement from prior guidance of a mid- to high-teens drop [12] Other Developments - The company announced a comprehensive refinancing plan, securing a new $150 million asset-based revolving credit facility to enhance financial flexibility [13]

Group 1 - The focus has shifted towards offshore drilling, supply industry, and shipping, including tankers, containers, and dry bulk [1] - The fuel cell industry is being monitored as it is still in its early stages of development [1] Group 2 - The individual has extensive experience in auditing with PricewaterhouseCoopers before transitioning to day trading nearly 20 years ago [2] - Successfully navigated significant market events such as the dotcom bubble, the aftermath of the World Trade Center attacks, and the subprime crisis [2]

Financial Data and Key Metrics Changes - The company reported second quarter net sales of $219 million, down 16% in constant currency, which was in line with expectations [20] - Gross margin expanded by 480 basis points year-over-year, reaching 57.4%, marking the third consecutive quarter of gross margin improvement [21] - Adjusted operating income for Q2 was positive $4 million, compared to a loss of $17 million a year ago, resulting in an adjusted operating margin of 1.7% [25] Business Line Data and Key Metrics Changes - The wholesale channel showed continued improvement, with strong comparable sales trends in Fossil retail stores despite reduced promotional activity [5] - Traditional watch sales in the Americas increased by double digits in Q2, while India also showed strong momentum across brands and channels [13] - The company closed six underperforming retail locations in Q2, bringing total closures to 34 year-to-date, with plans to close 45 to 50 locations by year-end [24] Market Data and Key Metrics Changes - Performance in key markets such as the U.S., India, Germany, and the UK improved, while China remained under pressure due to the macro environment [12] - The company noted a resurgence in interest for traditional fashion watches among younger consumers, particularly in India and the Americas [48] Company Strategy and Development Direction - The company is focused on three key pillars: refocusing on core brands, rightsizing the cost structure, and strengthening the balance sheet [4][17] - A new Fossil brand platform is being developed to enhance design and storytelling, with a recent website redesign aimed at improving customer engagement [8] - The company is investing in upper funnel marketing initiatives and collaborations to drive brand awareness and cultural relevance [10][11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate a complex environment and emphasized the importance of operational and financial rigor [18] - The full-year guidance was raised, expecting breakeven to slightly positive adjusted operating margins, reflecting gross margin expansion and significant cost reductions [29] - Management highlighted the importance of maintaining strong relationships with wholesale partners and the positive feedback received from them [41] Other Important Information - The company successfully refinanced its revolving credit facility and entered into a transaction support agreement with bondholders to extend bond maturities into 2029, improving liquidity [26][27] - Year-to-date SG&A savings reached $48 million, with a target of $100 million for the full year [24] Q&A Session Summary Question: Impact of changes in promotional activity and price increases on gross margins - Management noted that the shift to a full-price model has led to improved gross margins, with consumers willing to pay for perceived value [34][35] Question: Trends and initiatives in the wholesale channel - Management highlighted strong relationships with wholesale partners and investments in store presentation and marketing activities [40][41] Question: Strength in the younger consumer category and collaboration initiatives - Management confirmed a resurgence in traditional watches among younger consumers, with successful limited edition collaborations driving brand momentum [46][48]