Fossil Group, Inc. (NASDAQ:FOSL) has reported that Ms. Kim Harris Jones will resign from her position as a member of the company's Board of Directors and from her roles on the Audit Committee and the Nominating and Corporate Governance Committee, effective July 31, 2024. The announcement, detailed in a Form 8-K filing with the Securities and Exchange Commission, was made public on Thursday.
The resignation of Harris Jones was not due to any disagreements or disputes with the company's operations, policies, or practices, as clarified in the filing. Fossil Group, a Delaware-incorporated company with headquarters in Richardson, Texas, is known for its specialization in watches, clocks, and related devices and parts.
The departure of Harris Jones from the board will take place at the end of July, leaving a gap in the company's governance structure. The filing did not mention any immediate plans for a replacement or the reasons behind her decision to step down. Harris Jones has been serving on the Board and its committees until the announced date of her resignation.
Investors and market watchers often scrutinize changes in a company's leadership, as such moves can influence the company's strategic direction and governance. However, the company has not indicated any changes to its strategy or operations as a result of this departure.
The company's stock, which is traded on The Nasdaq Stock Market under the ticker symbol FOSL, may be subject to investor reaction following this announcement. Additionally, the company has 7.00% Senior Notes due in 2026 listed under the ticker FOSLL.
As per standard regulatory procedures, the Form 8-K filing ensures that shareholders and the public are informed of key changes within the company's leadership. Fossil Group's legal officer and secretary, Randy S. Hyne, signed off on the filing, fulfilling the company's obligation to report such events.
In other recent news, Fossil Group Inc (NASDAQ:FOSL). has disclosed its first quarter 2024 earnings, showing a decreased operating loss and an uptick in free cash flow, despite a notable decline in net sales. These positive trends are attributed to the company's Transform & Grow Plan (TAG), which is expected to yield accelerated benefits in the future. However, Fossil Group's net sales have significantly decreased, with a 21% drop in the first quarter due to store closures and the decision to exit the smartwatch business.
The company's full-year sales forecast remains at approximately $1.2 billion with an adjusted operating margin loss projected to be between 3% and 5%. The TAG plan is expected to contribute over $100 million in P&L benefits, leading to gross margin expansion in 2024. Moreover, Selling, General & Administrative (SG&A) expenses are forecasted to decrease in the low to mid-teens for the remaining quarters of 2024.
Despite sales pressure, particularly in licensed fashion watch brands and leathers, which account for over 40% of revenue, the company is committed to enhancing gross margins and reducing operating expenses. These are the recent developments for Fossil Group as it navigates through a challenging retail environment.
InvestingPro Insights
In light of the recent board changes at Fossil Group, Inc., investors may find the real-time data from InvestingPro particularly insightful. The company is currently trading at a low Price / Book multiple of 0.28, which could suggest that the stock is undervalued relative to its assets. Additionally, Fossil's stock has experienced significant volatility, with a one-week total return of -8.45% and a one-month total return of -16.67%, highlighting the stock's recent performance challenges. However, over the last three months, the stock has seen a strong return of 66.71%.
InvestingPro Tips indicate that while Fossil Group's stock has taken a considerable hit over the last week and month, its valuation implies a strong free cash flow yield. Moreover, the company's liquid assets exceed its short-term obligations, which could be a sign of financial stability in the near term. For investors seeking to delve deeper into Fossil's financial health and stock performance, there are additional tips available on InvestingPro, and they can use the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription. Currently, InvestingPro offers a total of 12 additional tips for Fossil Group, which can be accessed at: https://www.investing.com/pro/FOSL.
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