- The stock price of fashion designer and manufacturer Fossil Group Inc (NASDAQ: FOSL) increased 24.46% today. These are the details.
The stock price of fashion designer and manufacturer Fossil Group Inc (NASDAQ: FOSL) increased 24.46% as it went from $5.97 at the previous close to $7.43 today.
The company reported that worldwide net sales of $435 million decreased 19% on a reported basis and 20% in constant currency. And the company’s topline performance was better than expected, due to continued strength in both owned and third-party e-commerce, strong growth in mainland China, and improvements within the wholesale channel globally.
Based on a constant currency basis, the sales from Fossil’s owned e-commerce websites increased 66% and third party marketplace e-commerce sales increased 44% compared to prior year. And the company reported gross margin of 52.8%, representing 120 basis points of expansion compared to the third quarter of 2019.
Fossil reduced operating expenses by $75 million, or 26%, on a year-over-year basis. And the company also reported operating income of $18 million, compared to an operating loss of $9 million a year ago — primarily reflecting gross margin and cost reduction benefits.
As of October 3, 2020, the company reported cash and cash equivalents of $324 million and total debt of $239 million.
“The organization continues to execute well in the face of a challenging environment. We outperformed our topline expectations in the third quarter, reflecting ongoing momentum in our digital channels and strong growth in mainland China, as well as trend improvement in the wholesale channel globally.”
“In addition, we are making good progress on our strategic priorities, with accelerated initiatives around our digital expansion programs and structural cost reduction efforts. Given the uncertain environment, we are remaining agile and continuing to closely manage liquidity, expenses and inventory as we position the business for future growth.”
— Kosta Kartsotis, Chairman and CEO