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%.
Read more about the pandemic’s impact on the fashion industry here!
Sources: marketwatch.com, finance.yahoo.com