Fossil Group, Inc. (FOSL) stock soared 38.95% in the after-hours trading session at the price of $19.23 after reporting its financial results for the Q3 ended 2nd October 2021.
FOSL is a global design, distribution, marketing, and innovation firm. The company produces and commercializes lifestyle accessories under a diverse portfolio of both owned and licensed brands. Its offerings include smartwatches, traditional watches, handbags, jewelry, leather goods, belts, sunglasses, etc.
FOSL Q3 2021 Financial Results
On 10th November 2021, FOSL published its financial results for the Q3 ended 2nd October 2021 and presented corporate updates.
FOSL Financial Highlights
FOSL calculated net sales of $491.8M for the third quarter ended 2nd October 2021. It represents a gain of 11% in constant currency and 13% on a reported basis from $435.5 million in the same quarter of fiscal 2020. Gross profit was $259.5M for the Q3 of fiscal 2021. For the Q3 of fiscal 2020, gross profit totaled $229.8 million. The gross margin was flat during the quarter ended 2nd October 2021 compared to the previous year’s third quarter at roughly 52.8%.
FOSL reported a net income of $31.4M for the Q3 ended 2nd October 2021. Net income was $16.0M in the same period ended 2nd October 2020. For the Q3 of 2021, net income per diluted share was $0.60. Net income per diluted share was $0.31 in the Q3 of the previous year. For the Q3 ended 2nd October 2021, operating income raised to $47.8 million. Operating income was $17.5 million in the same three months of the prior year. In the Q3 of 2021, the operating margin was 9.7% compared to 4.0% in the third quarter of 2020.
FOSL reported operating expenses of $211.7M for the Q3 ended 2nd October 2021. Operating expenses totaled $212.3 million for the 3rd quarter ended 2nd October 2020. Selling, general and administrative expenses were approximately $205.7M for the Q3 of fiscal 2021. SG&A expenses were $202.0M in the third quarter of the previous year. For the 3rd quarter of 2021, adjusted EBITDA was 12.7% or $62.5 million of net sales. Adjusted EBITDA was 9.9% or $43.3M in the third quarter of 2020.
FOSL totaled the adjusted operating income to $53.8M. Adjusted operating income was roughly $27.8 million in the Q3 of 2020. For the third quarter ended 2nd October 2021, the adjusted operating margin totaled 10.9%. Adjusted operating margin was 6.4% in the Q3 ended 2nd October 2020.
