Fossil Group (NASDAQ:FOSL) is a Texas-based company that is engaged in the design, development, marketing, and distribution of consumer fashion accessories in the United States, Europe, Asia, and around the world. Shares of Fossil have plunged 24% month-over-month as of early morning trading on Friday, March 15, 2024. The stock is now down 44% so far in 2024. Fossil has faced increasing pressure from an activist investor that has led to a recent shakeup.
On March 13, 2024, Fossil announced that Kosta N. Kartsotis would step down as chief executive officer (CEO) and a member of the board of directors, effective immediately. Kartsotis will remain with the company in a transitional role until September 2024 in order to ensure a “seamless transition”. Jeffrey N. Boyer, who has served as Fossil’s executive vice president and chief operating officer (COO) since April 2021, has been appointed as Interim CEO and as a member of the board of directors.
The company unveiled its fourth quarter (Q4) and full year fiscal 2023 earnings on March 13. In Q4 2023, worldwide net sales fell 16% year-over-year to $421 million. Fossil suffered sales declines across all regions and channels. That sales decrease was driven by weakness in the wholesale channel, store rationalization initiatives, and lower smartwatch sales. Gross profit was reported at $200 million – down from $235 million in the previous year.
For the full year, Fossil delivered worldwide net sales of $1.41 billion. That was also down 16% on a reported and constant currency basis. The company suffered sales declines across all regions and all channels. It posted a full year operating loss of $143 million, compared to an operating loss of $1 million in the prior year.
