Fossil Group Reiterates FY24 Worldwide Net Sales Of ~$1.2B
Portfolio Pulse from Benzinga Newsdesk
Fossil Group has reiterated its FY24 worldwide net sales outlook of approximately $1.2 billion. The company expects a negative impact of around $100 million due to the exit from its smartwatch business and the closure of owned retail stores. The fiscal year adjusted operating margin is projected to be between -3% to -5%, but the company anticipates generating positive free cash flow, including $57 million in tax refunds received in Q2 2024.
August 08, 2024 | 8:53 pm
News sentiment analysis
Sort by:
Ascending
NEUTRAL IMPACT
Fossil Group has reiterated its FY24 worldwide net sales outlook of approximately $1.2 billion. The company expects a negative impact of around $100 million due to the exit from its smartwatch business and the closure of owned retail stores. The fiscal year adjusted operating margin is projected to be between -3% to -5%, but the company anticipates generating positive free cash flow, including $57 million in tax refunds received in Q2 2024.
The reiteration of the FY24 outlook suggests stability in revenue expectations despite significant negative impacts from strategic decisions like exiting the smartwatch business and closing retail stores. The negative operating margin forecast is concerning, but the expectation of positive free cash flow, bolstered by tax refunds, provides a mixed outlook. Investors may view the news as neutral in the short term, balancing the negative and positive aspects.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100