Global fashion and jewellery company Fossil Group has reported its year-on-year net sales for the second quarter, which totaled $259 million (£198 million) are down 48%.
The decline, it said, “primarily reflects COVID-19 related impacts on a global basis, including retail and wholesale closures, throughout much of the quarter”.
However, this loss was somewhat offset by reduced operating expenses of $86 million (£66 million), or 33%, on a year-on-year basis, due to its ‘New World Fossil 2.0 – Transform to Grow’ (NWF 2.0) programme as well as immediate cost reduction efforts.
This meant an operating loss of $37 million (£28 million), compared to operating income of $2 million (£1.5 million) a year ago, which it again blamed on COVID-19 impacts on sales.
“Our second quarter results were impacted by broad-based global store closures due to COVID-19 throughout much of the quarter,” stated Kosta Kartsotis, chairman and CEO. “Our teams have responded quickly and executed well in the face of significant COVID-19 impacts. In navigating this challenging environment, we have taken aggressive actions to increase liquidity and reduce costs, and further engaged with our consumers through digital initiatives and product innovation.
“Importantly, we are maintaining our focus on the strategic priorities we outlined at the beginning of 2020, including the acceleration of our cost reduction actions through NWF 2.0 and the expansion of our digital capabilities to help drive continued growth in the e-commerce channel.”
For comparison, read about the company’s Q2 2019 results below: