Key Takeaways
- Shares of the Fossil Group soared nearly 35% Thursday, a day after the company announced a turnaround plan.
- The watch and handbag retailer said it will cut jobs and close roughly 50 stores over the next year.
- The company’s fourth-quarter sales fell 19% year-over-year, but it also swing to an adjusted profit.
Fossil Group (FOSL) shares soared nearly 35% Thursday, a day after the watch and handbag retailer announced a turnaround plan that includes layoffs and store closures.
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 a 19% year-over-year drop in fourth-quarter sales to $342.3 million, but it also swung to an adjusted profit of $0.39 per share from an adjusted loss of $0.30 per share.
Following the turnaround plan, Fossil said it expects to generate more than $800 million in net sales in 2027, along with mid-single-digit adjusted operating income margin and positive free cash flow. Fossil, which reported $1.15 billion in net sales for 2024, said it expects a decline “in the range of mid to high teens” this year.
Fossil Names New CFO
Separately Wednesday, Fossil named Randy Greben as CFO. Greben, who most recently served in the same role with mattress maker Casper, will start at Fossil next Monday. The company hired a new CEO, Franco Fogliato, last September.
Shares of Fossil Group jumped 34% Thursday to $1.71, nearly double where they were 12 months ago.
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