Fossil Group posts FY19 net sales of $2.2 billion
The year-over-year (YoY) decline was reportedly due to continued softness in traditional wholesale channels and lower than expected performance in older generation connected watches. Store closures and business exits adversely impacted the YoY net sales comparison. Global retail comparable sales in constant currency decreased 3 per cent.
Gross profit for the quarter totalled $307.9 million compared to $416.9 million in Q4 FY18. Gross margin decreased 43.3 per cent, reportedly driven by inventory valuation charges, increased product costs including tariffs and freight, and heightened promotional activity.
Operating expenses in Q4 totalled $308.8 million compared to $349.6 million a year ago. Selling, general and administrative (SG&A) expenses decreased 12 per cent to $303.6 million, primarily resulting from corporate and regional infrastructure reductions driven by NWF 2.0 initiatives, lower variable marketing expenses, store closures, and the currency effects of a stronger dollar, as company reported.
Fourth quarter operating loss was $0.9 million compared to operating income of $67.3 million in same period prior year.
Gross profit in full FY19 totalled $1.1 billion compared to $1.3 billion in 2018, while gross margin decreased to 49.6 per cent versus 52.7 per cent a year ago.
Full year operating expenses was $1.1 billion. SG&A expenses decreased 12 per cent to $1.1 billion, reportedly resulting from corporate and regional infrastructure reductions driven by NWF 2.0 initiatives, store closures and the currency effects of a stronger US dollar.
Operating loss in FY19 totalled $28.4 million compared to operating income of $62.7 million in FY18.