12th August 2021, Mumbai:
Fossil Group, a watch and lifestyle accessory company, announced a 59 percent increase in revenues to $410.9 million in the second quarter of FY21, which concluded on July 3, compared to $259 million a year ago. Sales are expected to increase by 14 to 17 percent in FY21, according to the firm.
In a news statement, Kosta Kartsotis, chairman and CEO of Fossil Group, said, "Our outstanding second quarter performance reflects solid operational execution across all channels and geographies in a competitive consumer environment."
“Improving customer demand in our main markets and in our core category of conventional watches gives us hope.” In the second quarter, digital sales increased by 10%, accounting for 41% of total sales. Operating expenses were $207.5 million ($177.4 million), but gross profit increased to $221.8 million (up from $140.6 million). During the quarter, the net loss was reduced to $1.2 million ($22.5 million).
Sales in the Americas increased by 67% to $176.7 million ($105.8 million), while sales in Europe increased by 56% to $124.4 million ($79.5 million). Furthermore, sales from Asia increased by 50% to $103.5 million ($69.2 million) in the second quarter. “Looking ahead, we are happy that our digital initiatives, brand-building efforts, and ongoing transformation activities are setting the business up to produce long-term sales and profitability growth,” Kartsotis said in the release.
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