Fossil net sales increase 13% in third quarter

Worldwide
Published:  16 November, 2021
Credit: Fossil

Worldwide net sales increased 13% for the American watch and accessories brand to US$492 million, with growth of 10% in the Americas, 21% in Europe and 5% in Asia against the same period in the previous financial year.

Net sales for the company through all digital channels grew 28% and 97%, on a constant currency basis, compared with the third quarter of fiscal 2020 and 2019, respectively, and represented 40% of worldwide net sales.

Fossil’s operating expenses totalled US$211.7 million for the period, compared to US$212.3 a year before. As a percentage of net sales, operating expenses were 43.0% in the third quarter of 2021 compared to 48.7% in the prior year’s third quarter.

Meanwhile, operating income increased to US$47.8 million compared with US$17.5 million in 2020, and the operating margin was 9.7% compared to 4.0% in the prior year. Adjusted EBITDA was US$62.5 million, or 12.7% of net sales, up from US$43.3 million or 9.9% in 2020.

Outlook

For the full 2021 fiscal year, Fossil has raised its outlook for worldwide net sales growth to approximately 17% to 19%, at prevailing currency rates, and full year adjusted EBITDA margin to 8.5% to 9.5%. For the 13-week quarter ending January 1, 2022, worldwide net sales are expected to increase in the range of 18% to 25% compared to the 13-week quarter ending January 2, 2021.