Fossil Group (FOSL) Net Loss Narrows Despite Sales Decline

Fossil Group, Inc. (NASDAQ:FOSL) is one of the best multibagger penny stocks to buy according to analysts. On August 13, the company announced it will focus on key brand initiatives centered on product, marketing and customer experience in the second half of the year.

Fossil Group (FOSL) Net Loss Narrows Despite Sales Decline

The announcement follows the company’s delivery of a 15.2% decline in net sales in the second quarter to $220.4 million. The decline was driven by overall category consumer and channel softness. Declines in smartwatch sales, resulting from the exit of the category and rationalization initiatives, also affected the revenue base.

Fossil Group generated a loss of $4.1 million, a significant improvement from a loss of $36.6 million generated in the second quarter of 2024. Adjusted EBITDA improved to $7 million, or 3.2% of total sales, representing an improvement from a loss of $11.7 million a year ago. The company’s gross margin also improved by 480 basis points to 57.4%.

“We delivered a third consecutive quarter of positive adjusted operating income supported by a healthy gross margin profile and an improving cost structure. We are particularly pleased to have announced a comprehensive refinancing plan that we believe will meaningfully strengthen our financial position and create additional runway to support our turnaround and growth plans,” said Franco Fogliato, CEO.

Fossil Group, Inc. (NASDAQ:FOSL) is a global company that designs, markets, and distributes lifestyle accessories, with a focus on watches, handbags, jewelry, and small leather goods. They are known for their own brands like Fossil, Skagen, and Michele, as well as licensed brands like Michael Kors, Armani Exchange, and Tory Burch.

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Disclosure: None. This article is originally published at Insider Monkey.