Shares of the Fossil Group, Inc. (FOSL) stock were rising in the premarket following the announcement of third-quarter 2021 financial results. FOSL stock price saw a surge of 32.37% to reach $18.32 a share at the time of this writing. The stock was gloomy in the previous trade and went down by 4.88% at closing. Let’s dig in to understand the recent happenings.
Third Quarter 2021 Financial Results:
- Fossil stock reported an increase of 13% in net sales of $491.8 million in the third quarter of 2021. On a currency basis, the net sales increased by 11%. In the same quarter of the previous year, net sales were $435.5 million. Total digital sales represented a growth of 28% on a constant currency basis in the reported quarter.
- The gross profit of the FOSL stock amounted to $259.5 million in the reported quarter as compared to $229.8 million in the same tenure of the previous year. Gross margin of 52.8% was flat compared to the same quarter of last year.
- FOSL stock spent $211.7 million in operating expenses in the third quarter of 2021. This compares to $212.3 million in the same quarter of last year. Operating expenses as a percentage of net sales were 43.0% and 48.7% in the third quarter of 2021 and 2020 respectively.
- Operating income of FOSL stock significantly increased to reach $47.8 million in the third quarter of 2021 from $17.5 million in the same quarter of last year. Operating margin jumped from 4.0% in Q3,2020 to 9.7% in Q3,2021.
- Adjusted Operating income reached $53.8 million in the recently reported quarter compared to $27.8 million in the same quarter of last year. FOSL stock recorded an adjusted EBITDA of $62.5 million in the third quarter of 2021.
- Net income reached $31.4 million in the reported quarter, significantly higher than $16.0 million in the prior-year same period.
- By the end of the third quarter, Fossil stock had $182 million in cash equivalents and $123 million under revolving credit facility making total liquidity of $305 million. Inventories of the FOSL stock increased by 11% to reach $398 million and debt was $139 million by the end of the reported quarter.
Outlook of FOSL stock:
Fossil stock has projected a 17% to 19% increase in net sales across the globe for the fiscal year 2021. The company expects that its adjusted EBITDA margin will be between 8.5% to 9.5% for the fiscal year 2021.FOSL stock anticipated that its worldwide net sales for the 13-week quarter ending January 1, 2021, will show a growth of 18% to 25% from the same period of last year.