Fossil Group (NASDAQ:FOSL) Issues Quarterly Earnings Results

Fossil Group (NASDAQ:FOSL) issued its earnings results on Tuesday. The accessories brand company reported $0.19 EPS for the quarter, topping the consensus estimate of ($0.04) by $0.23, RTT News reports. The business had revenue of $271.20 million during the quarter, compared to the consensus estimate of $248.66 million. Fossil Group had a negative return on equity of 7.75% and a negative net margin of 1.86%. During the same quarter last year, the company earned ($0.76) EPS.

Here are the key takeaways from Fossil Group’s conference call:

• Fossil Group reported Q3 net sales growth of 2% to $276 million, with its namesake brand up 14% and traditional watch sales up 6%. Management said growth extended across channels and highlighted continued strength in the U.S. and India.
• Adjusted operating income rose to $30 million, while gross margin expanded to 59.9%. The company raised full-year sales guidance to $980–$990 million and adjusted operating margin guidance to 5.5%–6.5%, and continues to expect positive free cash flow.
• Q3 sales benefited from about $10 million of wholesale shipments shifted forward from Q4, while store closures also affected the comparison. Management said the timing shift is reflected in its Q4 outlook, making the underlying quarterly growth trajectory important to watch.
• Product launches are contributing to momentum: Machine X1 and the new Swiss-made Signature collection are reportedly selling ahead of expectations. Fossil also extended its Diesel licensing partnership through 2032 and renewed its global partnership with Nick Jonas.
• Some Q3 margin improvement reflected lower royalty guarantees and lower tariff rates, so the quarter’s margin expansion may not fully represent ongoing performance. Management expects Q4 SG&A to rise to the low 50s as it steps up demand-generation investment, and noted that European trends remain a recovery effort despite recent improvement.

Fossil Group Price Performance

NASDAQ FOSL traded down $1.24 during trading on Thursday, reaching $8.73. The company’s stock had a trading volume of 1,938,616 shares, compared to its average volume of 849,936. The stock has a market capitalization of $516.57 million, a PE ratio of -26.47 and a beta of 1.61. The company has a debt-to-equity ratio of 2.74, a current ratio of 1.76 and a quick ratio of 1.05. The firm has a fifty day moving average of $6.47 and a 200 day moving average of $4.98. Fossil Group has a one year low of $1.70 and a one year high of $10.55.

Insider Buying and Selling

In related news, Director Pamela J. Edwards purchased 7,208 shares of the firm’s stock in a transaction dated Thursday, August 20th. The shares were purchased at an average price of $5.58 per share, with a total value of $40,220.64. Following the acquisition, the director directly owned 50,251 shares of the company’s stock, valued at approximately $280,400.58. This represents a 16.75% increase in their ownership of the stock. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. 3.80% of the stock is currently owned by corporate insiders.

Analyst Ratings Changes

A number of brokerages have recently issued reports on FOSL. Lake Street Capital initiated coverage on shares of Fossil Group in a report on Wednesday, October 7th. They issued a “buy” rating and a $10.00 price target on the stock. Craig Hallum assumed coverage on shares of Fossil Group in a research note on Thursday, September 10th. They set a “buy” rating and a $12.00 price objective for the company. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Fossil Group in a report on Thursday, October 15th. Finally, Northland Securities set a $8.00 target price on shares of Fossil Group in a research note on Thursday, August 13th. One analyst has rated the stock with a Strong Buy rating, three have assigned a Buy rating, one has assigned a Hold rating and one has given a Sell rating to the stock. According to MarketBeat.com, Fossil Group presently has a consensus rating of “Moderate Buy” and a consensus price target of $9.25.

Fossil Group News Roundup

These are some of the FOSL news items that stood out recently:

• Positive Sentiment: Craig-Hallum maintained its Buy rating, offering continued analyst support for the turnaround. Article: Craig-Hallum Remains a Buy on Fossil Group
• Positive Sentiment: Northland Securities raised its FY2027 EPS estimate to $0.58 from $0.45, with higher forecasts for each of the second through fourth quarters—signaling improved expectations for future profitability.
• Negative Sentiment: A Seeking Alpha analysis argued that the strong Q3 performance and subsequent rally may already account for much of the good news, maintaining a Hold view. That valuation concern may be weighing on the shares despite the improved operating results. Article: Fossil Group Q3: Strong Results, But the Rally Already Prices It In

Fossil Group Company Profile

Fossil Group designs, develops, markets and distributes fashion accessories, including watches, handbags, small leather goods, jewelry and other accessories. Its products are sold under company-owned brands such as Fossil, Skagen, Michele and Zodiac, as well as through licensing agreements with third-party brands. Founded in 1984, the company has built its business around combining watchmaking with fashion-oriented design. It serves customers internationally through wholesale partners, retail stores and online channels.