Fossil Group Stock Fair Value – FOSSIL GROUP Reports FY2023 Q2 Earnings Results for June 30 2023
August 24, 2023
🌥️Earnings Overview
FOSSIL GROUP ($NASDAQ:FOSL) released their earnings results for the second quarter of FY2023 (ending June 30 2023) on August 9 2023, with total revenue of USD 322.0 million, a 13.3% decrease from the same period the year before. Net income for the quarter fell to USD -26.5 million, a larger decline from the previous year’s figure of -19.1 million.
Stock Price
On Wednesday, FOSSIL GROUP released their second quarter earnings results for fiscal year 2023, ending June 30th, 2023. FOSSIL GROUP stock opened at $2.5 and closed at $2.4, representing a 4.0% decrease from its previous closing price of $2.5. This marked the first decline in stock price since the company announced its third quarter earnings in March 2023. Analysts attribute the decrease in stock price to the weak performance in FOSSIL GROUP’s international markets, particularly in Asia and Europe. Despite significant investments and marketing campaigns, the company’s sales in these regions have failed to meet expectations.
Furthermore, FOSSIL GROUP’s domestic market share has declined, indicating that it may be losing ground to its competitors. Overall, FOSSIL GROUP’s earnings report has left investors cautious and uncertain about the future of the company. Although the company has reported a net income, its long-term outlook is uncertain due to its weak performance in certain markets. Investors will likely be watching closely as FOSSIL GROUP moves forward in order to gauge the success of their strategies and make more informed decisions. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Fossil Group. More…
| Total Revenues | Net Income | Net Margin |
| 1.58k | -71.36 | -3.8% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Fossil Group. More…
| Operations | Investing | Financing |
| -28.12 | -9.47 | -11.89 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Fossil Group. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 1.07k | 736.46 | 6.47 |
Key Ratios Snapshot
Some of the financial key ratios for Fossil Group are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| -5.9% | -26.9% | -2.5% |
| FCF Margin | ROE | ROA |
| -2.6% | -7.1% | -2.3% |
Analysis – Fossil Group Stock Fair Value
At GoodWhale, we recently performed an analysis regarding the wellbeing of FOSSIL GROUP. After studying the company’s financial performance and other external market factors, our proprietary Valuation Line estimated that the fair value of FOSSIL GROUP share is around $6.7. However, at the present moment, the stock of FOSSIL GROUP is traded at $2.4, which means it is hugely undervalued by 64.4%. We believe that this discrepancy between the fair value and the actual trading price presents a great investment opportunity for investors. More…
Peers
Fossil Group Inc is an American fashion designer and manufacturer founded in 1984. The company designs, markets, and distributes consumer fashion accessories, including watches, handbags, small leather goods, belts, wallets, jewelry, and eyewear. The company’s products are sold through department stores, specialty stores, watch and jewelry stores, company-owned retail stores, and e-commerce sites. Fossil Group’s competitors include Christian Dior SE, Brunello Cucinelli SpA, Ted Baker PLC, and a host of other companies in the luxury goods space.
– Christian Dior SE ($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 their FY2023 Q2 earnings results on August 9 2023 with total revenue of USD 322.0 million, a 13.3% decrease from the same period last year. Net income for the quarter was reported at USD -26.5 million, a decline from the previous year’s -19.1 million. The stock price moved down after the results were released, indicating a negative market sentiment for the company.
Investors should consider analyzing their current holdings and future investment decisions in FOSSIL GROUP as this decline shows a weakening performance of the company in the short-term. Furthermore, factors such as macroeconomic conditions, consumer confidence, and industry performance should also be taken into account when considering investments in FOSSIL GROUP.
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