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Key Takeaways
- The Fossil group shares soared by nearly 35% on Thursday, just a day after it announced a turnaround strategy.
- The watch and handbag retailer announced it would cut jobs and close approximately 50 stores in the next year.
- The company's fourth-quarter sales fell 19% year-over-year, but it also swing to an adjusted profit.
Fossil Group’s (FOSL) shares rose nearly 35% on Thursday, just a day after it announced a turnaround strategy that included layoffs and closing stores.
After the bell Wednesday, Fossil said it expects to save about $100 million in 2025 as it cuts an unspecified number of jobs, closes roughly 50 retail stores, and transitions "select international markets to a distributor model."
Fossil reported that its fourth-quarter sales fell 19% from the previous year to $342.3 millions, but it turned a profit of $0.39 per shares compared to a loss of $0.30.
Fossil has said that it will generate net sales of more than $800m in 2027. The company also expects an adjusted operating income margin of mid-single figures and positive free cashflow. Fossil reported $1.15 billion It said that in terms of net sales, it expects to see a decline this year “between mid-teens and high teens”.
Fossil Names a New CFO
Separately, Fossil announced Wednesday that Randy Greben was named CFO. Greben will begin at Fossil Monday, after most recently serving in the same position with mattress maker Casper. The company hired Franco Fogliato as its new CEO in September last year.
Shares in Fossil Group increased by 34% on Thursday to $1.71. This is nearly double what they were a year ago.
