Fossil Group sales dropped by 13% to $501 million in the 13 weeks ended June 29 compared to the same period last year, but were up over the first three months of 2019.
The second quarter result saw net losses narrow slightly from 7.8 million last year to $7.3 million.
Chairman and CEO of Fossil Group Kosta Kartsotis, says: “We delivered second quarter sales and earnings in line with our expectations. While sales declined in the quarter, our sales performance improved sequentially from the first quarter across all three regions. Growth in Asia accelerated, with continued strength in China and India as Emporio Armani maintained its strong momentum and the Fossil brand grew solidly. In addition, our global e-commerce sales were positive and Fossil delivered growth with its connected offerings.”
In America alone, quarterly sales fell from $279m last year to $223m this year. World-wide sales of watches dropped from $463m to $413m.
“While we are experiencing ongoing disruptions in our category, we continue to make progress on our strategic priorities which support our long-term goal of delivering sales growth and improved profitability. As we look to the back half of the year, we have exciting new innovations coming to market across our traditional and connected product categories,” Mr Kartsotis describes.
“Our focus on innovation along with our strong brand portfolio and powerful operating platform will enable us to deliver on our objective of long term profitable growth. We continue to make progress on our New World Fossil 2.0 – Transform to Grow initiative to create more efficiencies across the company. These additional efficiencies, combined with our strong free cash flow conversion capability, will enable us to reinvest in more innovation and growth driving digital activities,” he concludes.