Fossil Group (NASDAQ: FOSL) reported Q3 EPS of ($0.93). Revenue for the quarter came in at $344.1 million, versus $0 reported last year.

Outlook

The Company is updating its guidance for the full year 2023 to reflect results from the third quarter, as well as ongoing declines in the wholesale channel in the Americas and Europe, a more gradual than expected recovery of sales trends in China and current trends in our retail stores.

For full year 2023, the Company expects worldwide net sales declines of approximately 14% to 17% versus prior guidance of negative 5% to negative 10%. The expected year-over-year decline reflects an estimated fourth quarter net sales decline of 8% to 19% and assumes prevailing currency rates which are projected to positively impact sales by 70 basis points.

The Company expects full year 2023 adjusted operating margin(1) in the range of -6% to -8% compared to prior guidance of -2% to -4%, which reflects an estimated fourth quarter adjusted operating margin of flat to -5%.

(1) A reconciliation of adjusted operating margin, a non-GAAP financial measure, to a corresponding GAAP measure is not available on a forward-looking basis without unreasonable efforts due to the high variability and low visibility of certain income and expense items that are excluded in calculating adjusted operating margin.

For earnings history and earnings-related data on Fossil Group (FOSL) click here.