Fossil Group(FOSL)2025-03-12 20:06Financial Performance - Fourth quarter worldwide net sales were 421.3 million in Q4 2023[5]. - Full year 2024 net sales totaled 1.4 billion in 2023[12]. - For the 13 weeks ended December 28, 2024, net sales were 421.3 million for the same period in 2023[21]. - The Americas segment reported net sales of 203.7 million in the prior year[24]. Profitability and Loss - Fourth quarter adjusted operating income was 8.5 million in Q4 2023[12]. - Full year 2024 net loss totaled 1.94, compared to a net loss of 3.00 in the prior year[16]. - Operating income for the 13 weeks ended December 28, 2024, was a loss of 24.0 million for the same period in 2023[21]. - Fiscal 2024 total income (loss) before income taxes was (156.1) million in Fiscal 2023, showing an improvement of 24.4%[27]. - Adjusted EBITDA for Fiscal 2024 was (62.6) million, indicating a significant improvement[27]. - Operating income (loss) for the 52 weeks ended December 28, 2024, was (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 (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 59.8 million in Fiscal 2024, compared to 19.0 million, slightly lower than 178.6 million, representing a decrease of 29.4% versus a year ago[5]. - Total current assets decreased to 710.7 million in 2023, primarily due to a reduction in inventories[22]. - Total assets decreased to 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].