US fashion company Fossil Group posts Q1 FY21 sales of $363 mn

28 Jun '21

2 min read

Pic: Shutterstock

Fossil Group, a US-based global design, marketing and innovation company specialising in lifestyle accessories, posted 7 per cent sales decrease to $363.0 million in its first quarter (Q1) of FY21 ended on April 3, 2021, compared to $390.7 million in the same period of prior fiscal. The company's net loss for Q3 reduced to $24.4 million (Q1 FY20: $85.6 million).

“We are pleased to start the year with better than expected sales performance, which reflects improving consumer demand in the US, ongoing momentum in Mainland China and continued strength in our digital channels globally,” Kosta Kartsotis, chairman and CEO at Fossil Group, said in a press release.

Gross profit for Q1 FY21 rose to $182.6 million ($140.4 million), while selling, general and administrative expenses were $187.4 million ($245.7 million). The company’s operating expenses for the three-month period was $199.4 million ($274.7 million).

Fossil Group’s sales of watches category slipped to $291.6 million ($309.9 million), while leathers category sales were down to $34.1 million ($47.3 million). However, jewellery sales grew during Q1 FY21 to $29.9 million ($28.4 million).

Sales in Americas region for the quarter remained stagnant at $152.5 million ($152.9 million), whereas Europe reported a dip in sales to $109.2 million ($128.2 million). Moreover, sales from Asia surged to $106.2 million ($98.6 million).

“While the Covid pandemic continues to disrupt certain markets, we are encouraged by our outlook in large markets like the US and Mainland China, which are benefiting from the execution of our digital strategy. More broadly, we are pleased with our success in transforming the business model, which has strengthened our digital mix, significantly improved our cost structure and positions us to drive increased growth and profitability over the long term,” Kartsotis concluded.

Fibre2Fashion News Desk (JL)

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