Fossil Group (NASDAQ:FOSL) reported Q1 EPS of ($0.37), versus ($0.29) reported last year. Revenue for the quarter came in at $376 million, versus $363 million reported last year.
Outlook:
The Company is updating its guidance for full year 2022 to reflect the current estimated impact of foreign currency translation, as well as COVID-19-related restrictions in China and geopolitical uncertainty in Europe on its international business.
For fiscal year 2022, the Company now expects worldwide net sales growth of approximately flat to 3% versus prior guidance of 2% to 6%. This updated guidance includes an estimated foreign currency negative impact of 350 basis points, which compares to our prior estimate of 250 basis points for the full year. The Company anticipates that the impact of foreign currency translation will be most acute in the second and third quarters, with an estimated negative impact to net sales of 500 basis points. Updated net sales guidance for 2022 also includes an estimated impact of 150 basis points due to slowed revenue growth, primarily in our international markets.
The Company is reducing adjusted operating margin(1) guidance by 50 basis points for the full year and now expects adjusted operating margin of 5.5% to 6.5% compared to prior guidance of 6.0% to 7.0%.
(1) A reconciliation of adjusted operating margin, a non-GAAP financial measure, to a corresponding GAAP measure is not available on a forward-looking basis without unreasonable efforts due to the high variability and low visibility of certain income and expense items that are excluded in calculating adjusted operating margin.