The Richardson-based watch and accessories brand is closing stores and laid off staff as part of new cost-cutting measures.
RICHARDSON, Texas — Richardson-based watch and accessories brand Fossil Group will close dozens of stores and laid off staff amid a slump in sales, new fourth-quarter financial results for the brand show.
The cost-cutting measures are part of a plan introduced by Fossil CEO Franco Fogliato, who took over late last year, which includes closing about 50 stores, the report shows. Fossil says they expect the measures to save the company about $100 million over 2024.
Fossil had a total of nearly 250 stores as of December 2024, including 114 in the Americas.
This week, Fossil reported net sales worldwide were down $342 million, or 19%, in the fourth quarter of 2024. Gross profit totaled $186.4 million in the fourth quarter of 2024 compared to $200.5 million in the fourth quarter of 2023, the report showed.
“Declines in smartwatch sales resulting from our exit of the category and our store rationalization initiatives comprised approximately 600 basis points of the sales decline in the fourth quarter. Net sales, in constant currency, decreased 21% in Europe, 18% in the Americas and 13% in Asia versus the same quarter last year,” the report reads.
The gross profit margin, though, increased 630 basis points to 53.9%, according to the report.
“We are pleased to conclude the year with better than expected fourth quarter results, delivering $20 million of adjusted operating profit as our initiatives to improve our business performance started to gain traction,” Fogliato said in a statement.
As part of the turnaround plan Fogliato introduced, Fossil intends to cut costs, focus on core licensed brands, and optimize its global wholesale footprint, among other efforts, according to the report.
