FOSL Overview

Consumer Discretionary Sector Performance: The Consumer Discretionary Select Sector SPDR ETF rose by 1%, making it the top-performing sector among the 11 S&P groups last week.

Weakness in Major Holdings: Despite the sector's overall gain, major holdings like Home Depot and Nike saw declines of 4% and 13%, respectively.

Nike's Notable Decline: Nike's 13% drop represents its worst weekly performance since late June 2024, indicating ongoing challenges in the athletic apparel market.

Adidas Struggles: Adidas is also facing difficulties, currently trading 30% below its most recent 52-week high.

Stock Performance: Fossil Group, Inc. shares have dropped 17.7% since their Q3 earnings report, with a 24% decline over the past month, significantly underperforming the S&P 500 index.

Financial Results: The company reported a wider adjusted net loss of 63 cents per share and a 6.1% decrease in net sales to $270.2 million, primarily due to challenges in direct-to-consumer channels.

Operational Challenges: Fossil's gross profit fell by 6.9%, and the company faced a significant operating loss of $21.7 million, despite efforts to reduce operating expenses through restructuring.

Future Outlook: Despite the poor Q3 results, Fossil maintains its full-year guidance, expecting a mid-teens decline in worldwide net sales and has completed a major restructuring to enhance liquidity and extend debt maturity.

Textiles Market Performance: Textiles shares experienced a decline of approximately 2.7% on Monday, with Fossil Group and Carters leading the drop at 7.3% and 6.1%, respectively.

Sector Laggards: The textiles sector was identified as one of the laggards in the market, alongside general contractors and builders.

Market Commentary: The views expressed in the article are those of the author and do not necessarily represent Nasdaq, Inc.

Video Content: A video segment highlights the performance of the lagging sectors, including general contractors, builders, and textiles.

Financial Loss: Fossil Group Inc. reported a loss of $39.9 million in its third quarter, equating to 76 cents per share.

Adjusted Loss: When adjusted for non-recurring costs, the loss was 63 cents per share.

Revenue Figures: The company generated revenue of $270.2 million during the same period.

Company Background: Fossil Group is based in Richardson, Texas, and specializes in watches and accessories.

Third-Quarter Financial Performance: Fossil Group, Inc. reported a net loss of $39.9 million for the third quarter, an increase from a $32.0 million loss in the same period last year. Adjusted net loss was $32.8 million, compared to $30.0 million in the prior year.

Sales Decline: The company's net sales for the quarter were $270.2 million, reflecting a 6.1% decrease compared to the previous year, primarily due to challenges in direct-to-consumer channels and store rationalization efforts.

Future Financial Guidance: Fossil Group reiterated its guidance for fiscal year 2025, expecting worldwide sales to decline in the mid-teens and aiming for an adjusted operating margin that is break-even to slightly positive.

Author's Perspective: The views expressed in the report are those of the author and do not necessarily represent the opinions of Nasdaq, Inc.