US fashion firm Fossil Group sales jump 59% in Q2; raises FY21 outlook

12 Aug '21

2 min read

Pic: Fossil

Fossil Group, a global design and innovation firm specialising in lifestyle accessories, has reported 59 per cent sales acceleration to $410.9 million in second quarter (Q2) of FY21 ended on July 3, 2021, compared to $259.0 million in the same period of prior fiscal. The company has raised its FY21 outlook and expects sales to rise between 14 to 17 per cent.

“Our strong second quarter performance reflects solid operational execution across all channels and regions in a challenging consumer environment,” Kosta Kartsotis, chairman and CEO at Fossil Group, said in a press release. “We are encouraged by improving consumer demand in our largest markets and our core category of traditional watches.”

Digital sales for Q2 surged 10 per cent representing 41 per cent of the total sales. Gross profit improved to $221.8 million ($140.6 million), while operating expenses were $207.5 million ($177.4 million). Net loss during the quarter reduced to $1.2 million ($22.5 million).

Sales from Americas region jumped 67 per cent to $176.7 million ($105.8 million), and Europe sales expanded 56 per cent to $124.4 million ($79.5 million). Furthermore, sales from Asia during second quarter grew 50 per cent to $103.5 million ($69.2 million).

“Looking ahead we are pleased that our digital initiatives, brand-building efforts and ongoing transformation activities are positioning the business to deliver sustained sales and earnings growth over the long-term,” Kartsotis concluded in the release.

Fibre2Fashion News Desk (JL)

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