Fossil Group Q1 Loss Narrows; Lowers FY22 Sales Outlook; Stock Down 11%

(RTTNews) - Fashion company Fossil Group, Inc. (FOSL) on Wednesday reported narrower loss in the first-quarter. The company lowered its sales outlook for fiscal 2022, sending the stock down 11 percent in Wednesday's extended session.

The company reported net loss of $21.5 million or $0.41 per share in the first-quarter, narrower than net loss of $24.4 million or $0.47 per share in the same period last year.

Excluding items, loss was $19.3 million or $0.37 per share in the first-quarter, compared to loss of $14.9 million or $0.29 per share in the year-ago quarter. In the first quarter of 2022, currencies unfavorably affected loss per share by around $0.02.

Net sales totaled $375.9 million, up 4 percent from $363.0 million a year ago.

The company updated its full year 2022 to reflect the current estimated impact of foreign currency translation, as well as COVID-19-related restrictions in China and geopolitical uncertainty in Europe on its international business.

For fiscal year 2022, the Company now expects worldwide net sales growth of approximately flat to 3% versus prior guidance of 2% to 6%.

The company anticipates that the impact of foreign currency translation will be most acute in the second and third quarters, with an estimated negative impact to net sales of 500 basis points. The sales guidance for 2022 also includes an estimated impact of 150 basis points due to slowed revenue growth, primarily in our international markets.