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RICHARDSON, Texas - Fossil Group, Inc. (NASDAQ:FOSL) reported first quarter results, sending its shares up 6% in after-hours trading Wednesday.
The watchmaker and fashion accessories company posted a net loss of $17.6 million, or $0.33 per share, for the 14-week period ended April 5, 2025. This compares to a net loss of $24.3 million, or $0.46 per share, in the 13-week year-ago quarter. On an adjusted basis, Fossil reported a loss of $0.10 per share.
Revenue declined 8.5% YoY to $233.3 million, but exceeded analyst estimates. The sales decrease was primarily driven by overall category softness and store closures, partially offset by an extra week in the quarter.
Despite lower sales, Fossil’s gross margin expanded significantly to 61.3% from 52.4% last year, reflecting improved product margins and a favorable product mix.
"We are pleased to deliver another quarter of progress under our turnaround plan," said CEO Franco Fogliato. "We narrowed our sales declines, increased gross margin by 890 basis points and delivered a second consecutive quarter of positive adjusted operating profit."
The company reiterated its full-year 2025 outlook, expecting worldwide net sales to decline in the mid to high teens range. Adjusted operating margin is forecast to be in the negative low single digits.
Fossil ended the quarter with total liquidity of $99.5 million, including $78.3 million in cash and cash equivalents.
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