Sales dried up in Q2
The American watches and leather goods designer and manufacturer, Fossil Group, joined the club of fashion companies affected by the pandemic during the second quarter.
The company’s sales dropped to $259 million from $501.4 million reported in the same quarter last year. Due to store closures, the Texas-based Fossil reported a loss of $22.5 million, or $0.44 per share. Last year it lost $7.3 million, or 15 cents/share.
During the past quarter, the only increase the company had was in the e-commerce division. Online sales grew by 20%.
For Q3, Fossil expects the net sales to drop as much as 45%, but online sales are seen as the solution to keep the company afloat. For 2020, the company thinks it will generate $100 million in cost savings.
Although after the report Fossil stock price lost 3.53%, during today's pre-market session, it gained almost 10%.
Sources: marketwatch.com, finance.yahoo.com
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