:max_bytes(150000):strip_icc()/GettyImages-1091589048-cdba540ded5e478abe054d25702fa0be.jpg?w=1920&resize=1920,1267&ssl=1 "Fossil Group Stock Surges on Turnaround Plan With Layoffs, Store Closures | Global News Avenue")
Fossil Group Stock Surges on Turnaround Plan With Layoffs, Store Closures
:max_bytes(150000):strip_icc():format(jpeg)/GettyImages-1091589048-cdba540ded5e478abe054d25702fa0be.jpg)
Key Points
- The day after the company announced its turnaround plan, Fossil Group’s shares soared nearly 35%.
- Watch and handbag retailers say it will lay off employees next year and close at about 50 stores.
- The company’s fourth-quarter sales fell 19% year-on-year, but also fell to adjusted profits.
Fossil Formation (fosl) Stocks soared nearly 35% on Thursday, the day after viewing and handbag retailers announced turnaround plans that included layoffs and store closures.
After Bell Wednesday, Fossil said it expected to save about $100 million in 2025 as it cut unspecified jobs, closed about 50 retail stores and transitioned to “choose an international market to distributor model.”
Fossil reported that fourth-quarter sales fell 19% year-on-year to $342.3 million, but adjusted profit per share was $0.39 from an adjusted loss of $0.30 per share.
According to the turnaround plan, Fossil says it expects to generate more than $800 million in net sales in 2027 and adjusts for the middle digits. Operating income profit margin and positive Free cash flow. Fossil, reported $1.15 billion Of the net sales in 2024, net sales are expected to be “in the mid-teenage years to high school.”
Fossil name new CFO
On Wednesday, the fossil was named Randy Greben CFO. Greben recently took on the same role as mattress maker Casper, who will start with the fossil next Monday. The company hired new CEOFranco Fogliato, last September.
Fossil Group shares rose 34% to $1.71 on Thursday, almost double the amount it was 12 months ago.
:max_bytes(150000):strip_icc()/GettyImages-1091589048-cdba540ded5e478abe054d25702fa0be.jpg?w=1200&resize=1200,0&ssl=1&description=Fossil+Group+Stock+Surges+on+Turnaround+Plan+With+Layoffs%2C+Store+Closures+%7C+Global+News+Avenue){kind=link}