Fossil Group Intrinsic Value – FOSSIL GROUP Reports 21.1% Decrease in Revenue and 1063.3% Decrease in Net Income for Q3 FY2023

🌥️Earnings Overview

For the third quarter of FY2023, FOSSIL GROUP ($NASDAQ:FOSL) reported total revenue of USD 344.1 million and a net income of -61.1 million, representing a decline of 21.1% and 1063.3%, respectively, compared to the same period the year prior.

Analysis – Fossil Group Intrinsic Value

GoodWhale has conducted an analysis of FOSSIL GROUP‘s fundamentals and concluded that the intrinsic value of FOSSIL GROUP’s share is around $5.4. This value was calculated by our proprietary Valuation Line and is significantly higher than the current trading price of $1.7. This means that FOSSIL GROUP is currently undervalued by a massive 68.4%. This provides a great opportunity for investors to get a valuable stock at a discounted price. The Valuation Line is a tool developed by GoodWhale to assess the fair market value of a company and its stock. It takes into account the current financials, competitive landscape, and other metrics to determine an accurate estimate of the intrinsic value of a stock. By using this tool, GoodWhale has concluded that the current price of FOSSIL GROUP shares is far below their true value, making it an attractive opportunity for long-term investors. More…

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for Fossil Group. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for Fossil Group. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for Fossil Group. More…

Key Ratios Snapshot

Some of the financial key ratios for Fossil Group are shown below. More…

Peers

Fossil Group Inc is an American fashion designer and manufacturer founded in 1984. The company designs, markets, and distributes consumer fashion accessories, including watches, handbags, small leather goods, belts, wallets, jewelry, and eyewear. The company’s products are sold through department stores, specialty stores, watch and jewelry stores, company-owned retail stores, and e-commerce sites. Fossil Group’s competitors include Christian Dior SE, Brunello Cucinelli SpA, Ted Baker PLC, and a host of other companies in the luxury goods space.

– Christian Dior SE ($OTCPK:CHDRF)

Dior SE is a French luxury goods company that designs, manufactures, and markets a range of products including fashion, leather goods, jewelry, and fragrances. The company has a market capitalization of 114.24 billion as of 2022 and a return on equity of 73.73%. Dior is one of the leading luxury goods companies in the world and has a strong presence in markets such as Europe, the Americas, and Asia. The company’s products are sold through a network of boutiques and department stores.

– Brunello Cucinelli SpA ($OTCPK:BCUCY)

Brunello Cucinelli SpA is an Italian luxury fashion brand that was founded in 1978. The company designs, manufactures, and sells clothing, handbags, and other accessories. As of 2022, Brunello Cucinelli SpA has a market cap of 4.05 billion and a return on equity of 23.98%. The company’s products are sold in over 50 countries worldwide.

Summary

FOSSIL GROUP reported total revenue of USD 344.1 million and a net income of -61.1 million for the third quarter of FY2023, a decrease of 21.1% and 1063.3% respectively compared to the same period in the preceding year. This decrease in revenue and net income signals a concerning financial trend for potential investors, as it points out a weak financial performance from the company. While more detailed analysis is needed to understand the underlying reasons for this performance, investors should exercise caution when considering FOSSIL GROUP as a potential investment opportunity.