Thu, May 15, 8:49 PM (28 days ago)
**Fossil Group, Inc. (FOSL) Q1 2025 Financial Summary** **Financial Health and Performance:** - **Revenue:** $233.3 million, down 8.5% YoY (6.2% in constant currency). - **Profit Margins:** Gross profit margin increased to 61.3% from 52.4% YoY. - **Net Income:** Net loss of $17.6 million, or $0.33 per diluted share, compared to a net loss of $24.3 million, or $0.46 per diluted share, in the prior year quarter. - **Cash Flow:** Operating cash flow declined by $61.0 million due to working capital changes. **Segment Performance:** - **Americas:** Net sales decreased by 11.2% (8.8% in constant currency). - **Europe:** Net sales decreased by 1.8% (increased 0.5% in constant currency). - **Asia:** Net sales decreased by 12.5% (10.4% in constant currency). **Operational Highlights:** - **Cost Reduction:** Achieved SG&A cost savings and implemented restructuring programs. - **Inventory Management:** Proactively managing inventory to mitigate cash flow risks. - **Turnaround Plan:** Focus on core businesses, rightsizing cost structure, and strengthening the balance sheet. **Uncertainties and Future Operations:** - **Tariffs:** Monitoring impacts of U.S. tariffs on imports from China. - **Economic Environment:** Addressing economic uncertainties and potential recessionary conditions. - **Liquidity:** Assessing liquidity position and potential sources of supplemental liquidity. **Debt and Financing:** - **Debt Levels:** $182.3 million in outstanding indebtedness, with $20.0 million outstanding under the Revolving Facility. - **Revolving Facility:** $21.2 million in available borrowing capacity, reduced by a $5.0 million restructuring reserve in May 2025. **Forward-Looking Statements:** - **Strategic Review:** Continuing efforts to optimize the business model and reduce structural costs. - **Debt Maturity:** Working with advisors to address upcoming debt maturities in 2026. **Ticker:** FOSL