Q2 2024 Fossil Group Inc Earnings Call Transcript
Key Points
- Gross margin expanded by 390 basis points compared to last year.
- SG&A expenses were reduced by 18%, reflecting significant cost savings.
- Inventory levels declined by 38% year-over-year, improving working capital.
- The company received a $57 million US tax refund, strengthening liquidity.
- Fossil traditional watches showed positive sales trends, particularly in emerging markets like India.
- Net sales declined by 19% on a constant currency basis.
- The exit from the smartwatch category and store closures negatively impacted sales.
- The wholesale channel in the US and Europe remains challenging.
- Consumer sentiment in China remains soft, affecting sales.
- The company is still experiencing pressure in licensed watch brands and leather categories.
Good afternoon, ladies and gentlemen and welcome to the Fossil Group Second Quarter 2024 Earnings Call. [Operator Instructions] This conference call is being recorded and may not be reproduced in whole or in part without written permission from the company.
Now, I'll turn the call over to Christine Greany of The Blueshirt Group to begin. Christine.
Thank you. Hello, everyone and thanks for joining us. With us today on the call, are Jeff Boyer, Interim CEO; and Andy Skobe Interim CFO.
I would like to remind you that information made available during this conference call contains forward-looking information and actual results could differ materially from those that will be discussed during this call.
Fossil Group's policy on forward-looking statements and additional information concerning a number of factors that could cause actual results to differ materially from such statements is readily available in the company's Form 8-K, 10-Q and 10-K reports filed with the SEC.
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