Fossil Group, Inc. Files 2023 Annual Report on Form 10-K

TL;DR

<b>Fossil Group, Inc. has filed its 2023 annual report (10-K) detailing its financial performance and business operations.</b>

AI Summary

Fossil Group, Inc. (FOSL) filed a Annual Report (10-K) with the SEC on March 13, 2024. Fossil Group, Inc. filed its annual report on Form 10-K for the fiscal year ended December 30, 2023. The filing covers the period from January 1, 2023, to December 30, 2023. The company's principal business is in the Watches, Clocks, Clockwork Operated Devices/Parts industry (SIC 3873). Fossil Group, Inc. is incorporated in Delaware. The company's principal executive offices are located at 901 S Central Expressway, Richardson, TX 75080.

Why It Matters

For investors and stakeholders tracking Fossil Group, Inc., this filing contains several important signals. This 10-K filing provides a comprehensive overview of Fossil Group's financial health, operational performance, and strategic direction for the fiscal year 2023, which is crucial for investors to assess the company's current standing and future prospects. As a public company, Fossil Group is required to disclose detailed financial information, risks, and business strategies, offering transparency to stakeholders and the market.

Risk Assessment

Risk Level: medium — Fossil Group, Inc. shows moderate risk based on this filing. The company operates in the Watches, Clocks, Clockwork Operated Devices/Parts industry, which may be subject to changing consumer preferences and market competition, as indicated by its SIC code.

Analyst Insight

Investors should review the detailed financial statements and risk factors within the 10-K to understand Fossil Group's performance and potential challenges.

Key Numbers

• 2023-12-30 — Fiscal Year End (Conformed period of report)
• 2024-03-13 — Filing Date (Filed as of date)
• 3873 — SIC Code (Standard Industrial Classification)
• DE — State of Incorporation (State of incorporation)

Key Players & Entities

• Fossil Group, Inc. (company) — Filer name
• 901 S CENTRAL EXPRESSWAY (location) — Business address street 1
• RICHARDSON (location) — Business address city
• TX (location) — Business address state
• 75080 (location) — Business address zip
• 9722342525 (phone) — Business phone
• FOSSIL INC (company) — Former company name
• 19940218 (date) — Date of name change

FAQ

Industry Context

Fossil Group operates within the watch and accessories industry, a sector influenced by fashion trends, brand licensing, and global retail dynamics.

Regulatory Implications

As a publicly traded company, Fossil Group is subject to SEC regulations and reporting requirements, including the filing of annual reports like the 10-K.

What Investors Should Do

1. Review the full 10-K filing for detailed financial statements and management discussion.
2. Analyze the company's business segments and geographical performance.
3. Assess the identified risk factors and their potential impact on future operations.

Year-Over-Year Comparison

This filing represents the annual report for the fiscal year ending December 30, 2023, and will be compared against previous filings for year-over-year performance analysis.

Key Financial Figures

• $0.01 — ange on which registered Common Stock, $0.01 par value FOSL The Nasdaq Stock Market
• $300 million — the Company is targeting approximately $300 million of annualized operating income benefits

Filing Documents

• fosl-20231230.htm (10-K) — 2775KB
• fosl-20231230xex211.htm (EX-21.1) — 34KB
• fosl-20231230xex231.htm (EX-23.1) — 2KB
• fosl-20231230xex311.htm (EX-31.1) — 10KB
• fosl-20231230xex312.htm (EX-31.2) — 10KB
• fosl-20231230xex321.htm (EX-32.1) — 7KB
• fosl-20231230xex322.htm (EX-32.2) — 7KB
• fosl-20231230xex97.htm (EX-97) — 30KB
• fosl-20231230_g1.gif (GRAPHIC) — 1KB
• 0000883569-24-000007.txt (&nbsp;) — 14688KB
• fosl-20231230.xsd (EX-101.SCH) — 95KB
• fosl-20231230_cal.xml (EX-101.CAL) — 127KB
• fosl-20231230_def.xml (EX-101.DEF) — 425KB
• fosl-20231230_lab.xml (EX-101.LAB) — 1054KB
• fosl-20231230_pre.xml (EX-101.PRE) — 789KB
• fosl-20231230_htm.xml (XML) — 2822KB

Business

Business 1 Item 1A.

Risk Factors

Risk Factors 14 Item 1B. Unresolved Staff Comments 31 Item 1C. Cybersecurity 32 Item 2.

Properties

Properties 33 Item 3.

Legal Proceedings

Legal Proceedings 33 Item 4. Mine Safety Disclosures 33 PART II Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 34 Item 6. [Reserved] 34 Item 7.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 35 Item 7A.

Quantitative and Qualitative Disclosures about Market Risk

Quantitative and Qualitative Disclosures about Market Risk 47 Item 8. Consolidated Financial Statements and Supplementary Data 48 Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 86 Item 9A.

Controls and Procedures

Controls and Procedures 86 Item 9B. Other Information 88 Item 9C . Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 88 PART III Item 10. Directors, Executive Officers and Corporate Governance 88 Item 11.

Executive Compensation

Executive Compensation 88 Item 12.

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 88 Item 13. Certain Relationships and Related Transactions, and Director Independence 88 Item 14. Principal Accountant Fees and Services 88 PART IV Item 15. Exhibits and Consolidated Financial Statement Schedules 89 Item 16. Form 10-K Summary 89 Table of Contents In this Annual Report, references to "we," "our," "us," "Fossil" and the "Company" refer to Fossil Group, Inc., including its consolidated subsidiaries as of December 30, 2023 ("fiscal 2023"), December 31, 2022 ("fiscal 2022") and January 1, 2022 ("fiscal 2021"). NOTE REGARDING FORWARD-LOOKING STATEMENTS This Annual Report on Form 10-K ("Annual Report"), including the sections entitled "Management's Discussion and Analysis of Financial Condition and Results of Operations," "Risk Factors" and "Business," contains forward-looking statements based on our management's beliefs and assumptions and on information currently available to our management. Forward-looking statements include all statements that are not historical facts and generally may be identified by terms such as "believe," "may," "will," "should," "seek," "forecast," "outlook," "estimate," "continue," "anticipate," "intend," "could," "would," "project," "predict," "potential," "plan," "expect" or the negative or plural of these words or similar expressions. Forward-looking statements by their nature address matters that are, to different degrees, uncertain, and these forward-looking statements are only predictions and are subject to risks, uncertainties, and assumptions that are difficult to predict. Therefore, actual results may differ materially and adversely from those expressed in any forward-looking statements. Factors that might cause or contribute to such differences include, but are not limited to, those discussed in this Annual Report under the section entitled "Risk Factors" in Item 1A of Part I and elsewhere, and in o

Business

Item 1. Business Company We are a design, innovation and distribution company specializing in consumer fashion accessories. Our products include watches, jewelry, handbags, small leather goods, belts and sunglasses. We design, develop, market and distribute products under our owned brands FOSSIL, SKAGEN, MICHELE, RELIC and ZODIAC and licensed brands ARMANI EXCHANGE, DIESEL, DKNY, EMPORIO ARMANI, KATE SPADE NEW YORK, MICHAEL KORS, and TORY BURCH. Based on our range of accessory products, brands, distribution channels and price points, we are able to target style-conscious consumers across a wide age spectrum on a global basis. Operating Strategy Our goal is to drive shareholder value and make a positive impact on our people, planet and communities. We continue to operate in a very challenging business environment for our product offerings. In early 2023, we initiated our Transform and Grow plan ("TAG"), which was initially designed to reduce operating expenses, improve operating margins and advance our path to profitable growth. In August 2023, as a result of a more comprehensive business review, we expanded TAG to address a broader transformation and capture a greater level of benefits. Under the expanded program, the "Transform" aspect of TAG focuses on optimizing our core categories, brands, geographies and channels. Through this wider lens, we intend to restructure our operations to achieve improved gross margins, lower operating expenses and to reduce our working capital requirements. This comprehensive initiative encompasses various domains such as: organization and operating model optimization; sourcing and cost of goods sold opportunities; pricing, promotion, and markdown improvements; end-to-end product planning and inventory management enhancements; indirect procurement efficiencies, including marketing and information technology areas; logistics and distribution center operations efficiencies; store rationalization and optimization programs.

View Full Filing

View this 10-K filing on SEC EDGAR