Fossil Group saw sales drop $100 million after discontinuing its smartwatch sales and closing underperforming stores.
Group Inc., the 40-year-old Texas-based company that started out making a fashion watch with retro looks and then expanded to jewelry, handbags and accessories, reported its first-quarter net sales for 2024 declined 22 percent compared to the same period last year, coming in at $255 million.
The company also announced earlier that it was getting out of the smartwatch business, after facing a U.S. patent infringement lawsuit last year. Leaving the smartwatch channel and recently closing stores has resulted in about $100 million in revenue loss, the company said.said it would be closing underperforming stores, reducing inventories and making a strategic review of business with Evercore serving as a financial adviser.
Not only were net sales down, but the company saw a net loss of $24.3 million, which was better than one year ago when the first quarter experienced a $41.3 million net loss.
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