Fossil Group Stock Surges on Turnaround Plan With Layoffs, Store Closures
Key Takeaways
Fossil Group (
FOSL
) shares soared nearly 35% Thursday, a day after the watch and handbag retailer announced a turnaround plan that includes layoffs and store closures.
After the bell Wednesday, Fossil said it expects to save about $100 million in 2025 as it cuts an unspecified number of jobs, closes roughly 50 retail stores, and transitions “select international markets to a distributor model.”
Fossil reported a 19% year-over-year drop in fourth-quarter sales to $342.3 million, but it also swung to an adjusted profit of $0.39 per share from an adjusted loss of $0.30 per share.
Following the turnaround plan, Fossil said it expects to generate more than $800 million in net sales in 2027, along with mid-single-digit adjusted
operating income margin
and positive
free cash flow
. Fossil, which reported $1.15 billion in net sales for 2024, said it expects a decline “in the range of mid to high teens” this year.
Fossil Names New CFO
Separately Wednesday, Fossil named Randy Greben as
CFO
. Greben, who most recently served in the same role with mattress maker Casper, will start at Fossil next Monday. The company hired a new
CEO
, Franco Fogliato, last September.
Shares of Fossil Group jumped 34% Thursday to $1.71, nearly double where they were 12 months ago.
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