Fossil Issues Second Quarter 2017 Financial Results
Supplier Fossil Group has released financial results for its fiscal second quarter, which ended July 1. The Richardson, Texas, company reports quarterly net sales of $597 million.
Fossil’s worldwide net sales decreased 13 percent or $88.6 million in the second quarter, and growth in connected watches was more than offset by declines in traditional watches. Declines in leathers and jewelry, and changes in foreign currency also negatively affected net sales.
"With the first half of 2017 now behind us, we believe that our traction in wearables, our significant progress in our supply chain evolution and our reduction in infrastructure costs show that we are pursuing strategies that can improve our profitability and return the company to solid growth over time,” says Kosta Kartsotis, Fossil CEO. “Even as we operate in a market and retail environment experiencing unprecedented disruption, we believe we are focusing on actions that can deliver solid results and returns for our shareholders over time."
Kartsotis adds, "In the second quarter, the strength of our wearables product, particularly in key brands, once again demonstrated that wearables have the ability to help mitigate the ongoing softness in the traditional watch category and ultimately, we believe, turn current headwinds into tailwinds. We remain confident that technology in wristwear is increasingly important for many consumers and the catalyst for stabilizing and growing our watch business overtime.
“We have a significant number of exciting new products hitting the market over the next few months that are much improved over our current models. This next generation of wearables has increased functionality, slimmer cases, brighter screens, more brands and more robust software. We continue to believe we are in the best position to take advantage of the convergence of fashion and technology given our capabilities and portfolio of brands."
Kartsotis adds that Fossil’s focus remains on executing the company’s restructuring efforts, advancing its wearables initiative, and stabilizing and growing the core watch business to drive long-term profitable growth.
For more information on Fossil’s financial results, click here.