Second Quarter Net Sales of $597 Million
and GAAP Diluted EPS (Loss) of $(7.11);
Fossil Group, Inc. (NASDAQ:FOSL) (the “Company”) today reported its
financial results for the fiscal quarter ended July 1,
2017. In the second quarter of fiscal 2017, the stronger U.S.
dollar negatively impacted net sales by $8.3 million. Second
quarter fiscal 2017 net sales decreased 13% (12% on a constant
currency basis) as compared to the second quarter of fiscal 2016.
Second Quarter Fiscal
Year 2017 Revenue
SummaryIn the second quarter of fiscal 2017, reported
worldwide net sales decreased 13% or $88.6 million as growth in
connected watches was more than offset by declines in traditional
watches. Declines in leathers and jewelry and changes in
foreign currency also negatively impacted net sales. The following
table provides a summary of net sales performance for the second
quarter of fiscal 2017 compared to the second quarter of fiscal
year 2016.
| |
Second Quarter 2017 |
| |
Reported Results (1) |
|
Constant Currency (2) |
| |
|
|
|
| Total
Company |
(13 |
)% |
|
(12 |
)% |
| Americas |
(16 |
)% |
|
(16 |
)% |
| Europe |
(10 |
)% |
|
(7 |
)% |
| Asia |
(9 |
)% |
|
(8 |
)% |
| |
|
|
|
| Watches |
(9 |
)% |
|
(8 |
)% |
| Leathers |
(25 |
)% |
|
(24 |
)% |
| Jewelry |
(22 |
)% |
|
(20 |
)% |
|
|
|
|
|
(1) Includes impacts from currency.(2) Eliminates the effect of
the stronger U.S. dollar in fiscal 2017 to give investors a better
understanding of the underlying trends within the business.
See constant currency financial information at the end of this
release for more information.
The Company reported net income (loss) for the
second quarter of fiscal 2017 of $(344.7) million compared to $6.0
million for the second quarter of fiscal 2016. Diluted
earnings (loss) per share were $(7.11) compared to $0.12 for the
second quarter of fiscal 2016. Diluted earnings (loss) per
share for the second quarter of fiscal 2017 included non-cash
intangible asset impairment charges of $6.50, a restructuring
charge of $0.13 per diluted share and a negative impact from
changes in foreign currency of $0.08 per diluted share. The
non-cash intangible asset impairment charge was triggered by the
sustained compression of the Company’s market capitalization that
occurred throughout most of the latter part of the second quarter
of fiscal 2017.
Kosta Kartsotis, Chief Executive Officer,
commented. "With the first half of 2017 now behind us, we
believe that our traction in wearables, our significant progress in
our supply chain evolution and our reduction in infrastructure
costs, show that we are pursuing strategies that can improve our
profitability and return the company to solid growth over
time. Even as we operate in a market and retail environment
experiencing unprecedented disruption, we believe we are focusing
on actions that can deliver solid results and returns for our
shareholders over time."
Kosta Kartsotis continued, "In the second
quarter, the strength of our wearables product, particularly in key
brands, once again demonstrated that wearables have the ability to
help mitigate the ongoing softness in the traditional watch
category and ultimately, we believe, turn current headwinds into
tailwinds. We remain confident that technology in wrist wear
is increasingly important for many consumers and the catalyst for
stabilizing and growing our watch business overtime. We have
a significant number of exciting new products hitting the market
over the next few months that are much improved over our current
models. This next generation of wearables has increased
functionality, slimmer cases, brighter screens, more brands and
more robust software. We continue to believe we are in the
best position to take advantage of the convergence of fashion and
technology given our capabilities and portfolio of brands."
Mr. Kartsotis concluded, "Our focus remains
on executing our New World Fossil restructuring efforts, advancing
our wearables initiative, and stabilizing and growing our core
watch business to drive long term profitable growth. Given
our conviction in the positive impact these initiatives can have on
our financial performance, we are also working to ensure that we
have the proper capital structure needed to support our long-term
financial objectives. We are taking the necessary steps to
strengthen our financial position to further enable us to execute
our strategies well into the future and position our business model
for continued strong cash flow generation."
Operating ResultsCompared to
the second quarter of fiscal 2016, the impact of a stronger U.S.
dollar decreased the Company’s fiscal 2017 reported net sales by
$8.3 million and operating income by $4.5 million. The following
discussion of the Company’s net sales is presented on a GAAP basis
and in constant dollars and reflects regional performance based on
sales in all channels within the geographic location.
Second quarter fiscal 2017 worldwide net sales
decreased $88.6 million or 13% and $80.3 million in constant
currency (a 12% decline) compared to the second quarter of fiscal
2016. Across product categories, watches declined with growth
in connected watches more than offset by a decline in traditional
watches. Leathers and jewelry also declined compared to last
fiscal year.
Net sales in the Americas decreased $56.4
million or 16% and $55.0 million in constant currency (also a 16%
decline) compared to the second quarter of fiscal 2016.
Across product categories, watches declined with growth in
connected watches more than offset by a decline in traditional
watches. Leathers and jewelry also declined compared to last
fiscal year. A sales decline in the U.S. drove the decrease
in the region.
Net sales in Europe decreased $21.2 million or
10% and $14.8 million in constant currency (a 7% decline) compared
to the second quarter of fiscal 2016. Across product
categories, watches declined with growth in connected watches more
than offset by a decline in traditional watches. Jewelry and
leathers also declined compared to last fiscal year. Within
the region, modest growth in Spain was more than offset by declines
in the Middle East, France and the U.K.
Net sales in Asia decreased $11.0 million or 9%
and $10.5 million in constant currency (an 8% decline) compared to
the second quarter of fiscal 2016. Across product categories,
watches declined with growth in connected watches more than offset
by a decline in traditional watches. Leathers and jewelry
also declined compared to last fiscal year. Within the
region, an increase in India and China was more than offset by a
decline in nearly all other countries.
Global retail comps, including e-commerce sales,
for the second quarter of fiscal 2017 decreased 11% compared to the
second quarter of fiscal 2016 with declines in all product
categories and all regions.
During the second quarter of fiscal 2017, gross
margin decreased 140 basis points to 50.5%. The decrease in
gross margin was primarily driven by lower retail margins due to
increased promotional activity in outlets and the e-commerce
channel, as well as an increased mix toward lower margin connected
product. A higher level of off-price sales and the negative
impact of changes in foreign currencies also contributed to the
decline. Those headwinds were partially offset by margin
improvement initiatives and a higher mix of international
sales.
The Company’s operating expenses were $731.1
million, including $407.1 million in non-cash intangible asset
impairment charges and $9.8 million of restructuring costs
associated with realigning and optimizing the organizational
structure as well as costs associated with store closures.
Excluding those items, expenses were lower compared to the second
quarter of fiscal 2016 driven by lower infrastructure costs and a
reduction in store expenses.
Operating income (loss) for the second quarter
of fiscal 2017 decreased to $(429.8) million, driven by non-cash
intangible asset impairment charges and lower sales and gross
margin.
During the fiscal 2017 second quarter, interest
expense increased $5.2 million to $11.6 million and other income
decreased $0.5 million to $2.0 million compared to the prior fiscal
year.
The Company’s effective income tax rate in the
second quarter of fiscal 2017 was 21.9% compared to 30.2% for the
second quarter of fiscal 2016 due to the effect of the non-cash
intangible asset impairment charges and changes in jurisdictional
earnings.
Sales and Earnings Guidance
The Company is providing guidance on a GAAP
basis. For comparison purposes, the Company has also provided
a table at the end of this release which quantifies the estimated
impact on its operating income margin and its diluted earnings per
share related to unusual items impacting the operational results
for fiscal 2017 as compared to fiscal 2016.
GAAP GuidanceFor fiscal 2017, the
Company now expects the following:
- Net sales to decline in the range of a 8.5% to 4.5%
- Operating margin in a range of (14.7)% to (12.5)%
- Diluted earnings (loss) per share in a range of ($7.42) to
($6.62), including $6.50 of non-cash intangible asset impairment
charges and $0.60 of restructuring charges
For the third quarter of fiscal 2017, the Company
expects the following:
- Net sales to decline in the range of 14.0% to 8.0%
- Operating margin in a range of (2.7)% to 0.5%
- Diluted earnings (loss) per share in a range of ($0.44) to
($0.11), including $0.06 of restructuring charges
Safe HarborCertain statements
contained herein that are not historical facts, including
multi-year profit improvement estimates, the success of our
connected accessories, future financial guidance as well as
estimated impacts from foreign currency translation, amortization
expense, foreign tax credits, non-cash impairments and
restructuring charges, constitute “forward-looking statements”
within the meaning of the Private Securities Litigation Reform Act
of 1995 and involve a number of risks and uncertainties. The
actual results of the future events described in such
forward-looking statements could differ materially from those
stated in such forward-looking statements. Among the factors
that could cause actual results to differ materially are: changes
in economic trends and financial performance, changes in consumer
demands, tastes and fashion trends, lower levels of consumer
spending resulting from a general economic downturn, shifts in
market demand resulting in inventory risks, changes in foreign
currency exchange rates, risks related to the success of the
multi-year profit improvement initiative, risks related to the
success of our connected accessories and the outcome of current and
possible future litigation, as well as the risks and uncertainties
set forth in the Company’s Annual Report on Form 10-K for the
fiscal year ended December 31, 2016 filed with the Securities and
Exchange Commission (the “SEC”). These forward-looking
statements are based on our current expectations and beliefs
concerning future developments and their potential effect on us.
While management believes that these forward-looking statements are
reasonable as and when made, there can be no assurance that future
developments affecting us will be those that we anticipate.
Readers of this release should consider these factors in
evaluating, and are cautioned not to place undue reliance on, the
forward-looking statements contained herein. The Company
assumes no obligation to publicly update or revise any
forward-looking statements, whether as a result of new information,
future events, or otherwise, except as required by law.
About Fossil Group, Inc.Fossil
Group, Inc. is a global design, marketing, distribution and
innovation company specializing in lifestyle accessories.
Under a diverse portfolio of owned and licensed brands, our
offerings include fashion watches, jewelry, handbags, small leather
goods and wearables. With our newest owned brand, Misfit,
we’re bringing style and technology to the high-growth connected
space. We’re committed to delivering the best in design and
innovation across our owned brands, Fossil, Michele, Misfit, Relic,
Skagen and Zodiac, and licensed brands, Armani Exchange, Burberry,
Chaps, Diesel, DKNY, Emporio Armani, Karl Lagerfeld, kate spade new
york, Marc Jacobs, Michael Kors and Tory Burch. We bring each
brand story to life through an extensive wholesale distribution
network across approximately 150 countries and over 550 retail
locations. Certain press release and SEC filing information
concerning the Company is also available at
www.fossilgroup.com.
| Consolidated
Income Statement Data |
|
For the 13Weeks EndedJuly 1,
2017 |
|
For the 13Weeks EndedJuly 2,
2016 |
|
For the 26Weeks EndedJuly 1,
2017 |
|
For the 26Weeks EndedJuly 2,
2016 |
| ($ in millions,
except per share data): |
|
|
| Net sales |
|
$ |
596.8 |
|
|
$ |
685.4 |
|
|
$ |
1,178.6 |
|
|
$ |
1,345.2 |
|
| Cost of sales |
|
295.5 |
|
|
329.6 |
|
|
587.8 |
|
|
641.1 |
|
| Gross
profit |
|
301.3 |
|
|
355.8 |
|
|
590.9 |
|
|
704.1 |
|
| Gross margin |
|
50.5 |
% |
|
51.9 |
% |
|
50.1 |
% |
|
52.3 |
% |
| Operating
expenses: |
|
|
|
|
|
|
|
|
| Selling,
general and administrative expenses |
|
314.2 |
|
|
340.3 |
|
|
622.7 |
|
|
674.2 |
|
| Goodwill
and trade name impairment |
|
407.1 |
|
|
— |
|
|
407.1 |
|
|
— |
|
|
Restructuring charges |
|
9.8 |
|
|
— |
|
|
36.0 |
|
|
— |
|
| Total operating
expenses |
|
731.1 |
|
|
340.3 |
|
|
1,065.9 |
|
|
674.2 |
|
| Total operating
expenses (% of net sales) |
|
122.5 |
% |
|
49.6 |
% |
|
90.4 |
% |
|
50.1 |
% |
| Operating income
(loss) |
|
(429.8 |
) |
|
15.5 |
|
|
(475.0 |
) |
|
29.9 |
|
| Operating
margin |
|
(72.0 |
)% |
|
2.3 |
% |
|
(40.3 |
)% |
|
2.2 |
% |
| Interest expense |
|
11.6 |
|
|
6.4 |
|
|
20.0 |
|
|
12.4 |
|
| Other income (expense)
- net |
|
2.0 |
|
|
2.5 |
|
|
7.6 |
|
|
4.8 |
|
| Income (loss) before
income taxes |
|
(439.4 |
) |
|
11.6 |
|
|
(487.4 |
) |
|
22.3 |
|
| Provision for income
taxes |
|
(96.3 |
) |
|
3.5 |
|
|
(97.5 |
) |
|
6.8 |
|
| Less: Net
income attributable to noncontrolling interest |
|
1.6 |
|
|
2.1 |
|
|
3.0 |
|
|
3.7 |
|
| Net income (loss)
attributable to Fossil Group, Inc. |
|
$ |
(344.7 |
) |
|
$ |
6.0 |
|
|
$ |
(392.9 |
) |
|
$ |
11.8 |
|
| Earnings (loss) per
share: |
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
(7.11 |
) |
|
$ |
0.13 |
|
|
$ |
(8.12 |
) |
|
$ |
0.25 |
|
|
Diluted |
|
$ |
(7.11 |
) |
|
$ |
0.12 |
|
|
$ |
(8.12 |
) |
|
$ |
0.24 |
|
| Weighted average common
shares outstanding: |
|
|
|
|
|
|
|
|
|
Basic |
|
48.5 |
|
|
48.1 |
|
|
48.4 |
|
|
48.1 |
|
|
Diluted |
|
48.5 |
|
|
48.2 |
|
|
48.4 |
|
|
48.2 |
|
|
Consolidated Balance Sheet Data ($ in
millions): |
|
July 1, 2017 |
|
July 2, 2016 |
|
Assets: |
|
|
|
|
| Cash
and cash equivalents |
|
$ |
319.8 |
|
|
$ |
231.8 |
|
|
Accounts receivable - net |
|
240.4 |
|
|
257.1 |
|
|
Inventories |
|
618.1 |
|
|
661.7 |
|
| Other
current assets |
|
126.5 |
|
|
161.7 |
|
|
Total current assets |
|
1,304.8 |
|
|
1,312.3 |
|
|
Property, plant and equipment - net |
|
255.8 |
|
|
328.0 |
|
|
Goodwill |
|
0.0 |
|
|
364.2 |
|
|
Intangible and other assets - net |
|
215.4 |
|
|
222.0 |
|
|
Total long-term assets |
|
471.2 |
|
|
914.2 |
|
| Total
assets |
|
$ |
1,776.0 |
|
|
$ |
2,226.5 |
|
| |
|
|
|
|
|
Liabilities and stockholders’ equity: |
|
|
|
|
|
Accounts payable, accrued expenses and other current
liabilities |
|
$ |
381.4 |
|
|
$ |
385.4 |
|
|
Short-term debt |
|
32.7 |
|
|
26.3 |
|
|
Total current liabilities |
|
414.1 |
|
|
411.7 |
|
|
Long-term debt |
|
613.6 |
|
|
708.7 |
|
| Other
long-term liabilities |
|
93.5 |
|
|
150.6 |
|
|
Total long-term liabilities |
|
707.1 |
|
|
859.3 |
|
|
Stockholders’ equity |
|
654.8 |
|
|
955.5 |
|
| Total
liabilities and stockholders’ equity |
|
$ |
1,776.0 |
|
|
$ |
2,226.5 |
|
Net Sales by Segment and Product Category
Information
| |
|
For the 13
Weeks Ended |
|
|
For the 26
Weeks Ended |
| ($ in
millions): |
|
July 1, 2017 |
|
|
July 2, 2016 |
|
|
July 1, 2017 |
|
|
July 2, 2016 |
|
Segment: |
|
|
|
|
|
|
|
|
|
|
|
|
Americas |
|
$ |
288.8 |
|
|
|
$ |
345.2 |
|
|
|
$ |
566.3 |
|
|
|
$ |
681.0 |
|
|
Europe |
|
194.7 |
|
|
|
215.9 |
|
|
|
390.4 |
|
|
|
425.9 |
|
|
Asia |
|
113.3 |
|
|
|
124.3 |
|
|
|
221.9 |
|
|
|
238.3 |
|
| Total
net sales |
|
$ |
596.8 |
|
|
|
$ |
685.4 |
|
|
|
$ |
1,178.6 |
|
|
|
$ |
1,345.2 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
| Product
Categories: |
|
|
|
|
|
|
|
|
|
|
|
|
Watches |
|
$ |
469.4 |
|
|
|
$ |
517.6 |
|
|
|
$ |
919.2 |
|
|
|
$ |
1,014.1 |
|
|
Leathers |
|
69.6 |
|
|
|
93.2 |
|
|
|
142.3 |
|
|
|
185.6 |
|
|
Jewelry |
|
44.3 |
|
|
|
56.8 |
|
|
|
92.2 |
|
|
|
111.5 |
|
|
Other |
|
13.5 |
|
|
|
17.8 |
|
|
|
24.9 |
|
|
|
34.0 |
|
| Total net
sales |
|
$ |
596.8 |
|
|
|
$ |
685.4 |
|
|
|
$ |
1,178.6 |
|
|
|
$ |
1,345.2 |
|
Store Count Information
| |
|
July 1, 2017 |
|
July 2, 2016 |
| |
|
Americas |
|
Europe |
|
Asia |
|
Total |
|
Americas |
|
Europe |
|
Asia |
|
Total |
| Full price
accessory |
|
114 |
|
|
112 |
|
|
61 |
|
|
287 |
|
|
126 |
|
|
124 |
|
|
69 |
|
|
319 |
|
| Outlets |
|
137 |
|
|
74 |
|
|
48 |
|
|
259 |
|
|
155 |
|
|
73 |
|
|
45 |
|
|
273 |
|
| Full priced
multi-brand |
|
— |
|
|
8 |
|
|
10 |
|
|
18 |
|
|
— |
|
|
7 |
|
|
16 |
|
|
23 |
|
| Total stores |
|
251 |
|
|
194 |
|
|
119 |
|
|
564 |
|
|
281 |
|
|
204 |
|
|
130 |
|
|
615 |
|
Constant Currency Financial Information
The following table presents the Company’s
business segment and product net sales on a constant currency
basis. To calculate net sales on a constant currency basis,
net sales for the current fiscal year period for entities reporting
in currencies other than the U.S. dollar are translated into U.S.
dollars at the average rates during the comparable period of the
prior fiscal year. The Company presents constant currency
information to provide investors with a basis to evaluate how its
underlying business performed excluding the effects of foreign
currency exchange rate fluctuations. The constant currency
financial information presented herein should not be considered a
substitute for, or superior to, the measures of financial
performance prepared in accordance with GAAP.
| |
|
Net Sales |
Net Sales |
|
|
For the 13 Weeks Ended |
For the 26 Weeks Ended |
|
|
July 1, 2017 |
July 1, 2017 |
| ($ in
millions) |
|
AsReported |
|
Impact
ofForeignCurrencyExchangeRates |
|
ConstantCurrency |
AsReported |
|
Impact
ofForeignCurrencyExchangeRates |
|
ConstantCurrency |
| Segment: |
|
|
|
|
|
|
|
|
|
|
|
|
Americas |
|
$ |
288.8 |
|
|
$ |
(1.4 |
) |
|
$ |
290.2 |
|
$ |
566.3 |
|
|
$ |
(2.3 |
) |
|
$ |
568.6 |
|
|
Europe |
|
194.7 |
|
|
(6.4 |
) |
|
201.1 |
|
390.4 |
|
|
(14.7 |
) |
|
405.1 |
|
|
Asia |
|
113.3 |
|
|
(0.5 |
) |
|
113.8 |
|
221.9 |
|
|
0.2 |
|
|
221.7 |
|
| Total net
sales |
|
$ |
596.8 |
|
|
$ |
(8.3 |
) |
|
$ |
605.1 |
|
$ |
1,178.6 |
|
|
$ |
(16.8 |
) |
|
$ |
1,195.4 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
| Product
Categories: |
|
|
|
|
|
|
|
|
|
|
|
|
Watches |
|
$ |
469.4 |
|
|
$ |
(6.1 |
) |
|
$ |
475.5 |
|
$ |
919.2 |
|
|
$ |
(12.4 |
) |
|
$ |
931.6 |
|
|
Leathers |
|
69.6 |
|
|
(0.9 |
) |
|
70.5 |
|
142.3 |
|
|
(1.6 |
) |
|
143.9 |
|
|
Jewelry |
|
$ |
44.3 |
|
|
$ |
(1.1 |
) |
|
$ |
45.4 |
|
$ |
92.2 |
|
|
$ |
(2.4 |
) |
|
$ |
94.6 |
|
|
Other |
|
13.5 |
|
|
(0.2 |
) |
|
13.7 |
|
24.9 |
|
|
(0.4 |
) |
|
25.3 |
|
| Total net
sales |
|
$ |
596.8 |
|
|
$ |
(8.3 |
) |
|
$ |
605.1 |
|
$ |
1,178.6 |
|
|
$ |
(16.8 |
) |
|
$ |
1,195.4 |
|
Items Impacting Comparison of Fiscal 2017 Operations to
Fiscal 2016 Operations
The following table quantifies the estimated
impact on the Company's operating margin and its diluted earnings
(loss) per share related to non-operating currency gains and
losses, operating currency changes and restructuring and non-cash
intangible asset impairment charges for fiscal 2017 as compared to
fiscal 2016. The table also includes the impact of higher
interest expense in 2017 and reflects an adjusted tax rate to
normalize for quarter to quarter fluctuations due to mix in
jurisdictional earnings and / or losses and discrete items
generated from changes in accounting rules. Numbers may not
add due to rounding.
The Company believes that the fiscal 2016 and
2017 operating margin and diluted EPS measures are useful to
investors in comparing the Company's projected financial
performance year-over-year without the impact of non-operating
currency gains and losses in both fiscal 2016 and 2017, operating
currency headwinds between fiscal 2016 and 2017, restructuring
charges in both fiscal 2016 and 2017, intangible asset impairment
charges in 2017 and higher anticipated 2017 interest expenses as
well as the fiscal 2016 real estate gain. The Company uses
the fiscal 2016 and 2017 non-GAAP operating margin and diluted EPS
measures to evaluate its operating performance
year-over-year. The non-GAAP financial measures presented
herein should not be considered a substitute for, or superior to,
guidance or financial measures prepared in accordance with
GAAP.
| Fiscal
Year |
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
2017 |
|
|
2016 |
| |
|
High |
|
Low |
|
| |
|
OpMargin |
|
DilutedEPS |
|
OpMargin |
|
DilutedEPS |
|
OpMargin |
|
DilutedEPS |
| GAAP |
|
(12.5 |
)% |
|
$ |
(6.62 |
) |
|
(14.7 |
)% |
|
$ |
(7.42 |
) |
|
4.2 |
% |
|
$ |
1.63 |
|
| Restructuring
Charges |
|
1.6 |
|
|
|
0.60 |
|
|
1.6 |
|
|
|
0.60 |
|
|
0.9 |
|
|
|
0.37 |
|
| Fiscal 2016 Real Estate
Gain |
|
— |
|
|
|
— |
|
|
— |
|
|
|
— |
|
|
(0.2 |
) |
|
|
(0.09 |
) |
| Currency
Impact |
|
0.4 |
|
|
|
0.05 |
|
|
0.4 |
|
|
|
0.05 |
|
|
— |
|
|
|
(0.11 |
) |
| Incremental Interest
Expense |
|
— |
|
|
|
0.25 |
|
|
— |
|
|
|
0.25 |
|
|
— |
|
|
|
— |
|
| Non-cash Intangible
Asset Impairment Charge |
|
14.0 |
|
|
|
6.50 |
|
|
14.7 |
|
|
|
6.50 |
|
|
— |
|
|
|
— |
|
| Tax - Normalized
Rate |
|
— |
|
|
|
0.37 |
|
|
— |
|
|
|
0.37 |
|
|
— |
|
|
|
— |
|
|
Non-GAAP |
|
3.5 |
% |
|
$ |
1.15 |
|
|
2.0 |
% |
|
$ |
0.35 |
|
|
4.9 |
% |
|
$ |
1.80 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
Third Fiscal Quarter |
|
|
|
|
|
|
|
|
|
|
| |
|
2017 |
|
|
2016 |
| |
|
High |
|
Low |
|
| |
|
OpMargin |
|
DilutedEPS |
|
OpMargin |
|
DilutedEPS |
|
OpMargin |
|
DilutedEPS |
| GAAP |
|
0.5 |
% |
|
$ |
(0.11 |
) |
|
(2.7 |
)% |
|
$ |
(0.44 |
) |
|
4.2 |
% |
|
$ |
0.36 |
|
| Restructuring
Charges |
|
0.7 |
|
|
|
0.06 |
|
|
0.7 |
|
|
|
0.06 |
|
|
0.6 |
|
|
|
0.22 |
|
| Fiscal 2016 Real Estate
Gain |
|
— |
|
|
|
— |
|
|
— |
|
|
|
— |
|
|
(0.2 |
) |
|
|
(0.09 |
) |
| Currency
Impact |
|
0.8 |
|
|
|
0.05 |
|
|
0.8 |
|
|
|
0.05 |
|
|
— |
|
|
|
(0.01 |
) |
| Incremental Interest
Expense |
|
— |
|
|
|
0.07 |
|
|
— |
|
|
|
0.07 |
|
|
— |
|
|
|
— |
|
|
Non-GAAP |
|
2.0 |
% |
|
$ |
0.07 |
|
|
(1.2 |
)% |
|
$ |
(0.26 |
) |
|
4.6 |
% |
|
$ |
0.48 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
Second Fiscal Quarter |
|
|
|
|
|
|
|
|
|
|
| |
|
Q2 2017 Actual |
|
Q2 2016 Actual |
|
|
| |
|
OpMargin |
|
DilutedEPS |
|
OpMargin |
|
DilutedEPS |
|
|
|
|
| GAAP |
|
(72.0 |
)% |
|
$ |
(7.11 |
) |
|
2.3 |
% |
|
$ |
0.12 |
|
|
|
|
|
| Non-Cash Intangible
Asset Impairment Charge |
|
68.2 |
|
|
|
6.50 |
|
|
|
|
|
|
|
|
|
| Restructuring
Charges |
|
1.6 |
|
|
|
0.13 |
|
|
— |
|
|
|
— |
|
|
|
|
|
| Currency
Impact |
|
0.8 |
|
|
|
0.05 |
|
|
— |
|
|
|
(0.03 |
) |
|
|
|
|
| Incremental Interest
Expense |
|
— |
|
|
|
0.08 |
|
|
— |
|
|
|
— |
|
|
|
|
|
| Tax - Normalized
Rate |
|
— |
|
|
|
0.12 |
|
|
— |
|
|
|
— |
|
|
|
|
|
|
Non-GAAP |
|
(1.4 |
%) |
|
$ |
(0.23 |
) |
|
2.3 |
% |
|
$ |
0.09 |
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
Investor Relations:
Eric M. Cerny
FOSSIL GROUP, Inc.
(855) 336-7745
Allison Malkin
ICR, Inc.
(203) 682-8225
Fossil (NASDAQ:FOSL)
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