Fossil Group, a well-known American company headquartered in Richardson, Texas, has surpassed expectations with its first-quarter results for the period ending March 31. While experiencing a decrease in total sales compared to the previous year, the company has made significant progress in narrowing its losses. Despite a decline in total sales to $103.9 million, down by 18%, Fossil Group reported a net loss of $12.2 million for the first quarter of 2019, a substantial improvement from the $48.3 million loss in the same quarter of 2018.
The decrease in sales was primarily attributed to the watches category in the Americas and Europe, which was partially offset by sales growth in Asia. Sales declines in the U.S. were a key factor in the drop in the Americas, while in Europe, sales fell in the Eurozone and distributor markets in Eastern Europe and the Middle East, especially in major markets like Germany, France, and the UK. However, sales increases in countries like China, India, Hong Kong, and South Korea in Asia helped balance out the moderate declines in Australia, Japan, and Taiwan.
CEO of Fossil Group, Kosta Kartsotis, emphasized the positive performance in Asia, particularly in China and India, as well as the encouraging e-commerce and connected watch sales in the Americas. Despite a 9% decrease in global retail comps in the first quarter, Fossil Group experienced growth in global direct e-commerce sales and connected watch sales.
Looking forward, Fossil Group is focused on transforming its business model to align with evolving consumer preferences for traditional watches, connected devices, jewellery, and leathers. The company plans to manage its operations conservatively while concentrating on enhancing sales channels, boosting product innovation, and addressing industry disruptions.
During a recent conference call, Fossil executives revealed intentions to shutter around 30 stores in 2019 out of the 150+ stores they currently oversee worldwide. For the second quarter, Fossil Group anticipates a sales decline ranging from 16% to 10% and an income loss before taxes of $17 million to $3 million. Despite the challenges, Fossil remains steadfast in adapting to the shifting market dynamics and innovating across its product offerings to secure long-term success in the industry.
For more information about Fossil Group’s latest financial results and future strategies, you can visit their official website here. Additionally, to stay updated on industry news and trends in the fashion and accessories sector, you may find this article from Forbes insightful: Forbes Fashion Section.
