Fossil Group taps New CFO to lead turnaround effort after weak Q4
Fossil flagship in Paris Credits: Fossil American fashion design and manufacturer, Fossil Group recorded fourth quarter net sales of 342 million dollars, down 19 percent, with sales declines across all regions and all channels. Operating income was 20.1 million dollars or 5.9 percent of net sales and income per share was 39 cents. In response to these results, Fossil Group has implemented a comprehensive turnaround plan. This plan includes a corporate workforce reduction, which was executed in late February, cost reductions through the transition of smaller international markets to a distributor model, and the closure of approximately 50 retail stores. Furthermore, the company has appointed Randy Greben as chief financial officer, effective March 17, replacing interim CFO Andrew Skobe, to lead these turnaround efforts. Fossil Group aims to achieve net sales exceeding 800 million dollars by the full year 2027, along with an adjusted operating income margin in the mid-single-digit range and positive free cash flow. "We are pleased to conclude the year with better than expected fourth quarter results, delivering 20 million dollars of adjusted operating profit as our initiatives to improve our business performance started to gain traction," stated CEO Franco Fogliato. Fossil Group posts negative Q4 A breakdown of the fourth-quarter performance reveals significant regional declines. The company’s net sales decreased 21 percent in Europe, 18 percent in the Americas and 13 percent in Asia versus the same quarter last year. Wholesale sales declined 10 percent, while direct to consumer sales declined 27 percent on a constant currency basis with comparable retail sales decline of 20 percent. Among the product categories, traditional watch sales declined 10 percent, the leather category decreased 37 percent and jewelry sales declined 19 percent and the majority of the brands in the company’s portfolio also decreased in the fourth quarter. Fossil branded sales decreased 20 percent, driven by declines in leather and smartwatches, while traditional watch sales decreased slightly during the fourth quarter of 2024. Fossil Group appoints Randy Greben as CFO To spearhead the financial aspects of the turnaround, Fossil Group has appointed Randy Greben as its new CFO. He will be responsible for overseeing the company's global financial strategy, focusing on leading the financial turnaround and business transformation. Greben brings extensive experience from his previous roles, most recently as Chief Financial and Operating Officer at Casper Sleep, where he strengthened the balance sheet, managed the sale of the company's Canadian business, and significantly reduced costs. Prior to that, he served as CFO and Treasurer at Blue Apron and held senior financial positions at Ann Inc. Earlier in his career, Greben was CFO and General Manager at Quidsi, a subsidiary of Amazon.com. "Randy is a proven leader and change agent. His appointment will add tremendous value to our team as we pursue our turnaround plan and focus on value creation for all our stakeholders," said Fogliato.
American fashion design and manufacturer, Fossil Group recorded fourth quarter net sales of 342 million dollars, down 19 percent, with sales declines across all regions and all channels. Operating income was 20.1 million dollars or 5.9 percent of net sales and income per share was 39 cents.
In response to these results, Fossil Group has implemented a comprehensive turnaround plan. This plan includes a corporate workforce reduction, which was executed in late February, cost reductions through the transition of smaller international markets to a distributor model, and the closure of approximately 50 retail stores.
Furthermore, the company has appointed Randy Greben as chief financial officer, effective March 17, replacing interim CFO Andrew Skobe, to lead these turnaround efforts.
Fossil Group aims to achieve net sales exceeding 800 million dollars by the full year 2027, along with an adjusted operating income margin in the mid-single-digit range and positive free cash flow.
"We are pleased to conclude the year with better than expected fourth quarter results, delivering 20 million dollars of adjusted operating profit as our initiatives to improve our business performance started to gain traction," stated CEO Franco Fogliato.
Fossil Group posts negative Q4
A breakdown of the fourth-quarter performance reveals significant regional declines. The company’s net sales decreased 21 percent in Europe, 18 percent in the Americas and 13 percent in Asia versus the same quarter last year. Wholesale sales declined 10 percent, while direct to consumer sales declined 27 percent on a constant currency basis with comparable retail sales decline of 20 percent.
Among the product categories, traditional watch sales declined 10 percent, the leather category decreased 37 percent and jewelry sales declined 19 percent and the majority of the brands in the company’s portfolio also decreased in the fourth quarter.
Fossil branded sales decreased 20 percent, driven by declines in leather and smartwatches, while traditional watch sales decreased slightly during the fourth quarter of 2024.
Fossil Group appoints Randy Greben as CFO
To spearhead the financial aspects of the turnaround, Fossil Group has appointed Randy Greben as its new CFO. He will be responsible for overseeing the company's global financial strategy, focusing on leading the financial turnaround and business transformation.
Greben brings extensive experience from his previous roles, most recently as Chief Financial and Operating Officer at Casper Sleep, where he strengthened the balance sheet, managed the sale of the company's Canadian business, and significantly reduced costs.
Prior to that, he served as CFO and Treasurer at Blue Apron and held senior financial positions at Ann Inc. Earlier in his career, Greben was CFO and General Manager at Quidsi, a subsidiary of Amazon.com.
"Randy is a proven leader and change agent. His appointment will add tremendous value to our team as we pursue our turnaround plan and focus on value creation for all our stakeholders," said Fogliato.
