Fossil Group, a global design, marketing and innovation company specialising in lifestyle accessories, has reported 16 per cent sales decline to $391 million in first quarter (Q1) FY20 ended on April 4, 2020 compared to sales of $465 million in same period last year. Company reported operating loss of $134.3 million (Q1 FY19: $19.9 million).
Gross profit for the quarter were $140.4 million ($248.0 million). Net loss during Q1 FY20 were $85.6 million ($12.2 million).
The company’s New World Fossil 2.0 (NWF 2.0) transform to grow programme was expanded during the quarter to address additional challenges posed by Covid-19. NWF 2.0 is designed to deliver gross margin benefits and operating expense reductions totalling $200 million over the three-year period from 2019 to 2021.
“As people around the globe continue to face the many challenges presented by Covid-19, we are taking actions to mitigate the headwinds and chart our path forward amid a new operating environment,” Kosta Kartsotis, chairman and CEO at Fossil Group, said in a press release.
Geographically sales were impacted in all the regions during Q1 FY20: Americas $153 million ($190 million), Europe $128 million ($153 million) and Asia $106 million ($117 million).
Sales of all the segments were down as well with Watches $310 million ($366 million), Leathers $47 million($54 million), Jewellery $23 million ($31 million) and Others $11 million ($14 million).
“As we continue to navigate the impacts of Covid-19, we are accelerating our focus on driving digital growth and capturing organisational efficiencies, two of our key strategic priorities for 2020,” Kartsotis said.
Our investments in digital capabilities, including the recent completion of a new global e-commerce platform, have allowed us to meet significantly increased demand and seamlessly serve our customers. As economies begin to reopen around the globe, we are working closely with our wholesale partners and executing a phased reopening of our Fossil stores.”
