Fossil Group, a renowned provider of watches and lifestyle accessories, has achieved a remarkable surge in sales during the second quarter of FY21. The company’s sales increased by a staggering 59%, reaching a total of $410.9 million compared to $259 million in the same period last year. As a result of this impressive performance, Fossil Group has revised its outlook for the full year, anticipating a rise in sales between 14% and 17%.
Kosta Kartsotis, the chairman and CEO of Fossil Group, praised the company’s solid operational execution across all channels and regions as the driving force behind their success, despite the challenging consumer environment. He expressed optimism regarding the improving consumer demand in their largest markets, as well as the core category of traditional watches.
Digital sales played a significant role in Fossil Group’s exceptional performance, witnessing a remarkable surge of 10% and accounting for 41% of total sales in the second quarter. This underscores the crucial role of their digital initiatives in driving growth. Moreover, the company witnessed a noteworthy improvement in gross profit, which amounted to $221.8 million, compared to $140.6 million in the previous year. Simultaneously, operating expenses rose from $177.4 million to $207.5 million.
Furthermore, Fossil Group achieved a significant reduction in net loss for the quarter, which amounted to $1.2 million, representing a significant improvement from the $22.5 million loss reported in the same period last year. This impressive change reflects the company’s ongoing efforts to streamline operations and enhance profitability.
Sales in the Americas region experienced a notable increase of 67%, totaling $176.7 million. Europe also witnessed robust growth, with sales expanding by 56% to reach $124.4 million. The Asia region displayed promising results as well, with sales growing by 50% to reach $103.5 million.
Kartsotis expressed great confidence in the future of Fossil Group, mentioning that their digital initiatives, brand-building efforts, and ongoing transformation activities have positioned the business for sustainable sales and earnings growth in the long term.
Overall, Fossil Group’s exceptional performance in the second quarter and the revised outlook for the full year demonstrate their exemplary ability to navigate the challenges of the consumer market and seize growth opportunities. With a strong emphasis on digital initiatives and brand-building, Fossil Group is well-prepared to continue prospering in the ever-evolving retail landscape.
For more information on Fossil Group’s recent success and their future prospects, you can visit their official website [insert link] and read their press release [insert link].
