Fossil Group, Inc. Announces CFO Transition
July 01 2024 - 9:00AM
Fossil Group, Inc. (NASDAQ: FOSL) announced today it has engaged
Ankura Consulting Group, LLC to provide interim-CFO services and
has appointed Andrew Skobe as the Company’s Interim Chief Financial
Officer, effective immediately. Skobe assumes the CFO role from
Sunil Doshi, who is leaving the Company for another opportunity.
Doshi will remain with the Company through July 19, 2024 to ensure
a smooth transition. The Company has initiated a search for a
permanent CFO successor to Mr. Doshi.
Skobe brings to Fossil more than 30 years of
financial, operational and leadership experience, including
business transformation and integration, capital raising and
restructuring, global operations and M&A. His background spans
publicly traded companies, private equity and startups across
multiple sectors, including consumer goods, hospitality, investment
banking, media & entertainment and technology.
“On behalf of the Board and management team, I
want to thank Sunil for his leadership and dedication over the past
four years,” said Jeffrey N. Boyer, Interim CEO. “We wish him well
as he pursues the next chapter in his career.”
“We are pleased to bring in Andy at this pivotal
time for Fossil,” added Boyer. “He brings a wealth of relevant
experience assisting companies during transformational stages and
is highly skilled in business planning and forecasting, cash
management, capital raising and restructuring. We look forward to
working with Andy and benefiting from his expertise as we continue
to execute our Transform and Grow Plan and conduct our previously
announced Strategic Business Review.”
Prior to Ankura, Skobe was EVP and Chief
Financial Officer for Radisson Hotel Group from 2017 to 2019.
Previously, he spent four years as EVP & CFO for Croscill
Home-Excell-Glenoit, a portfolio of private equity owned companies
and five years as CFO for Icahn Enterprises. During his tenure with
Icahn, Skobe was Chief Financial Officer for portfolio company
WestPoint Home. Earlier in his career, Skobe held senior financial
positions with Columbia House, a $1 billion video and entertainment
company owned by Blackstone Private Equity, Dun & Bradstreet,
Marvel Entertainment, General Motors New York Treasurer’s Office
and JP Morgan Chase. Skobe holds a B.S. in Economics and Business
Administration from Boston University and an MBA in Accounting and
Corporate Finance from Columbia Business School.
Affirms 2024 Outlook
Fossil today said that it is affirming its 2024
outlook, including worldwide net sales of approximately $1.2
billion, adjusted operating margin1 in the range of -3% to -5% and
positive free cash flow2, inclusive of tax refunds of approximately
$57 million, which were received in the second quarter of 2024. The
Company expects to report its second quarter 2024 earnings results
on Thursday, August 8, 2024.
(1) A reconciliation of adjusted operating
margin, a non-GAAP financial measure, to a corresponding GAAP
measure is not available on a forward-looking basis without
unreasonable efforts due to the high variability and low visibility
of certain income and expense items that are excluded in
calculating adjusted operating margin. (2) Free cash flow is a
non-GAAP financial measure, defined as net cash from operating
activities less net cash used in investing activities. A
corresponding reconciliation of free cash flow to a corresponding
GAAP measure is not available on a forward-looking basis without
unreasonable effort.
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 watches, jewelry, handbags,
small leather goods, belts and sunglasses. We are committed to
delivering the best in design and innovation across our owned
brands, Fossil, Michele, Relic, Skagen and Zodiac, and licensed
brands, Armani Exchange, Diesel, DKNY, Emporio Armani, kate spade
new york, Michael Kors and Tory Burch. We bring each brand story to
life through an extensive distribution network across numerous
geographies, categories, and channels. Certain press release and
SEC filing information concerning the Company is also available
at www.fossilgroup.com.
Safe Harbor
Certain statements contained herein that are not
historical facts, 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: risks related to the success of the TAG
Plan; the impact of activist shareholders; a downgrade in our debt
ratings; our level of indebtedness; our ability to achieve
consistent profitability or positive cash flow; increased political
uncertainty, the effect of worldwide economic conditions; the
effect of a pandemic; significant changes in consumer spending
patterns or preferences; interruptions or delays in the supply of
key components or products; acts of war or acts of terrorism; loss
of key facilities; data breach or information systems disruptions;
changes in foreign currency valuations in relation to the U.S.
dollar; lower levels of consumer spending resulting from a general
economic downturn or generally reduced shopping activity caused by
public safety or consumer confidence concerns; the performance of
our products within the prevailing retail environment; customer
acceptance of both new designs and newly-introduced product lines;
changes in the mix of product sales; the effects of vigorous
competition in the markets in which we operate; compliance with
debt covenants and other contractual provisions and meeting debt
service obligation; risks related to the success of our business
strategy; the termination or non-renewal of material licenses;
risks related to foreign operations and manufacturing; changes in
the costs of materials and labor; government regulation and
tariffs; our ability to secure and protect trademarks and other
intellectual property rights; levels of traffic to and management
of our retail stores; loss of key personnel and the outcome of
current and possible future litigation, as well as the risks and
uncertainties set forth in the Company’s most recent Annual Report
on Form 10-K 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.
Investor Relations Contact:
Christine Greany The Blueshirt Group (858)
722-7815christine@blueshirtgroup.com
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