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FOSL (Fossil Group) Degree of Operating Leverage : 2.03 (As of Mar. 2025)


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What is Fossil Group Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Fossil Group's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was 2.03. The higher Degree of Operating Leverage, the higher operating risk the company will take.

The industry rank for Fossil Group's Degree of Operating Leverage or its related term are showing as below:

FOSL's Degree of Operating Leverage is ranked worse than
60.02% of 1013 companies
in the Manufacturing - Apparel & Accessories industry
Industry Median: 1.08 vs FOSL: 2.03

Fossil Group Degree of Operating Leverage Historical Data

The historical data trend for Fossil Group's Degree of Operating Leverage can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Fossil Group Degree of Operating Leverage Chart

Fossil Group Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
Degree of Operating Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only -363.93 -9.79 10.34 -283.61 1.39

Fossil Group Quarterly Data
Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25
Degree of Operating Leverage Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -22.80 -11.58 0.48 1.39 2.03

Competitive Comparison of Fossil Group's Degree of Operating Leverage

For the Footwear & Accessories subindustry, Fossil Group's Degree of Operating Leverage, along with its competitors' market caps and Degree of Operating Leverage data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Fossil Group's Degree of Operating Leverage Distribution in the Manufacturing - Apparel & Accessories Industry

For the Manufacturing - Apparel & Accessories industry and Consumer Cyclical sector, Fossil Group's Degree of Operating Leverage distribution charts can be found below:

* The bar in red indicates where Fossil Group's Degree of Operating Leverage falls into.


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Fossil Group Degree of Operating Leverage Calculation

Fossil Group's Degree of Operating Leverage for the quarter that ended in Mar. 2025 is calculated as:

Degree of Operating Leverage=% Change in EBIT**/% Change in Revenue
=( -83.77 (Mar. 2025) / -125.104 (Mar. 2024) - 1 )/( 1123.4 (Mar. 2025) / 1342.232 (Mar. 2024) - 1 )
=-0.3304/-0.163
=2.03***

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

** TTM data of EBIT and Revenue was used to calculate Degree of Operating Leverage.
*** Please be aware that the Degree of Operating Leverage calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.


Fossil Group  (NAS:FOSL) Degree of Operating Leverage Explanation

Degree of Operating Leverage (DOL) is a leverage ratio that measures the sensitivity of a company’s operting income, also referred to as Earnings Before Interest and Taxes (EBIT), to fluctuations in its Revenue. DOL is a method used to quantify a company’s operating risk. This risk is related to the company's structure of variable costs and fixed costs. Since the fixed costs do not allow the company to adjust the operating costs, the operating risk rises with a higher fixed-to-variable costs proportion.

A high Degree of Operating Leverage indicates that the company’s fixed costs exceed its variable costs. By increasing the sales, the company can earn more profits. In addition, the company must be able to maintain relatively high sales to cover all fixed costs.

Be Aware

The use of operating leverage varies across different industries and business sectors, and the application of Degree of Operating Leverage (DOL) should be adjusted accordingly.


Fossil Group Degree of Operating Leverage Related Terms

Thank you for viewing the detailed overview of Fossil Group's Degree of Operating Leverage provided by GuruFocus.com. Please click on the following links to see related term pages.


Fossil Group Business Description

Traded in Other Exchanges
Address
901 S. Central Expressway, Richardson, TX, USA, 75080
Fossil Group Inc is a design, innovation and distribution company in consumer fashion accessories. The products include traditional watches, smartwatches, jewelry, handbags, small leather goods, belts and sunglasses. The reportable segments are comprised of 1) Americas segment includes sales in Canada, Latin America and the United States. 2) Europe segment includes sales in European countries, the Middle East and Africa. 3) Asia segment includes sales in Australia, China, India, Indonesia, Japan, Malaysia, New Zealand, Singapore, South Korea and Thailand. Each reportable operating segment includes sales to wholesale and distributor customers, and sales through Company-owned retail stores and e-commerce activities based on the location of the selling entity.
Executives
Suzanne M Coulter director 6301 FITCH PATH, NEW ALBANY OH 43054
Kosta N Kartsotis director, 10 percent owner, officer: Pres. & CEO 901 S. CENTRAL EXPRESSWAY, RICHARDSON TX 75080
Diane L Neal director
Melissa B Lowenkron officer: SVP, General Manager, Fossil 901 S CENTRAL EXPY, RICHARDSON TX 75080
Holly Briedis officer: EVP, Chief Digital Officer 901 S CENTRAL EXPY, RICHARDSON TX 75080
Gregory A Mckelvey officer: Executive Vice President 2515 MCKINNEY AVE., SUITE 1200, DALLAS TX 75201
Darren E. Hart officer: Executive Vice President 2280 N. GREENVILLE AVENUE, RICHARDSON TX 75082
Steve Andrew Evans officer: Executive Vice President 901 S. CENTRAL EXPRESSWAY, RICHARDSON TX 75080
Gail B Tifford director 901 S. CENTRAL EXPRESSWAY, RICHARDSON TX 75134
Marc Rey director 901 S. CENTRAL EXPRESSWAY, RICHARDSON TX 75080
Sunil M Doshi officer: SVP, Chief Accounting Officer 5760 STATE HIGHWAY 121, SUITE 250, PLANO TX 75024
Martin Frey officer: EVP 901 S. CENTRAL EXPRESSWAY, RICHARDSON TX 75080
William B Chiasson director C/O LEAPFROG ENTERPRISES, INC., 6401 HOLLIS STREET, SUITE 150, EMERYVILLE CA 94608
Kim Harris Jones director THREE LAKES DRIVE, NORTHFIELD IL 60093
Kevin Mansell director C/O KOHLS LEGAL, N56 W170000 RIDGEWOOD DR, MENOMONEE FALLS WI 53051