Strong digital sales drives American fashion group Fossil's Q3 result

17 Nov '21

2 min read

Pic: Fossil

Fossil Group, a global design and innovation firm specialising in lifestyle accessories, has reported a 13 per cent sales increase to $491.8 million in the third quarter (Q3) of FY21 ended on October 2, 2021, compared to the sales of $435.5 million in the same period of prior fiscal. Digital sales for the three-month period expanded 28 per cent, representing 40 per cent of the total sales.

“Top line growth, solid gross margins and ongoing expense management drove adjusted operating margins of 11 per cent in the third quarter. A continuing focus on our four strategic priorities is fuelling broad-based sales growth, led by digital channels,” Kosta Kartsotis, chairman and CEO at Fossil Group, said in a press release.

Gross profit during Q3 rose to $259.5 million ($229.8 million), while operating expenses remained stagnant at $211.7 million ($212.3 million). Net income nearly doubled during the quarter to $31.4 million ($16.0 million).

By region, Americas emerged as the largest market with sales of $193.7 million ($175.1 million), while Europe registered a sharp increase in sales to $165.9 million ($135.3 million). Moreover, sales from Asia surged to $129.5 million ($119.7 million).

As for product categories, Fossil said its leathers business slipped to $36.4 million ($37.7 million). Watches sales accelerated in the third quarter to $393.7 million ($356.6 million).

“We are entering the holiday season with a healthy inventory position and strong consumer demand within our largest markets and core categories. As we look ahead to 2022, we feel confident that the business is well-positioned from both an operational and financial perspective. We have the talent, tools and financial flexibility to continue to drive growth and build shareholder value over the long-term,” Kartsotis concluded.

Additionally, the American company raised its outlook and now expects FY21 sales to grow approximately 17-19 per cent (previous outlook: 14-17 per cent).

Fibre2Fashion News Desk (JL)

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