Fossil Group, Inc. (NASDAQ: FOSL) is engaged as a global lifestyle and fashion company, which offers a wide range of apparel and accessories, such as watches, jewelry, handbags, leather goods, belts, sunglasses, and more. Shares of the fashion brand are rallying 27% through early trading on Thursday, November 11, 2021. Over the past three months, Fossil Group has seen average daily volume of 427,170 shares. However, volume of 15.38 million shares or dollar volume of $266.07 million, has already exchanged hands through early trading Thursday.
Shares of Fossil Group are gaining Thursday, after the company reported third quarter 2021 financial results. The company reported global net sales of $492 million, which represents year-over-year growth of 13%. Net digital sales grew 28% over the past year and accounted for 40% of total global sales. Net income for the third quarter 2021 came in at $31.4 million or $0.60 per diluted share, nearly double from Q3 2020 net income of $16 million or $0.31 per diluted share.
Aiding the strong financial results was a slight drop in operating expenses. For the period ended September 30, 2021, Fossil Group saw operating expenses total $211.7 million compared to $212.3 million last year.
On a forward-looking basis, Fossil Group provided shareholders with a bullish outlook. The fashion company raised its global sales outlook to between 17% and 19%. Adjusted EBITDA margins are estimated between 8.5% and 9.5%. Lastly, Fossil Group estimates the 13-week quarter ending January 1, 2022 could produce global net sales growth between 18% and 25%.
“We are pleased to report another quarter of strong financial performance,” said Kosta Kartsotis, Chairman and CEO. “Top line growth, solid gross margins and ongoing expense management drove adjusted operating margins of 11% in the third quarter. A continuing focus on our four strategic priorities is fueling broad-based sales growth, led by digital channels. We are proud of our teams for their hard work and dedication that has translated to strong top line performance, while also delivering sharp execution on inventory management and expense control fundamentals.”
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