Dear Stockholders,
As we reflect on 2020 and the many challenges it brought, we are reminded of
enduring spirit. We saw this in our associates across the Fossil organization,
we saw this in first responders and essential workers on the front lines, and we
saw this in our local communities as people around the world came together to
navigate a global pandemic.
We are proud of our teams and grateful to them for working through the near-term operational challenges
presented by the COVID-19 pandemic, while also remaining focused on our long-term strategic priorities.
Although the pandemic disrupted our business in 2020, it also provided an opportunity for us to lean into our
digital capabilities and allowed us to accelerate our path to becoming a digitally-led organization.
When the COVID-19 pandemic emerged and government-mandated lockdowns took effect, we acted quickly
to protect our employees, partners and communities globally, mitigate business disruption and strengthen our
financial position. We also pivoted to service significantly higher demand levels on our e-commerce websites.
We did this by leveraging the digital capabilities we have been building for the past two years, implementing a
new global salesforce.com e-commerce platform and investing in new digital tools and resources. As a result, in
2020, global sales generated by our digital channels doubled to 40% from 20% in 2019.
In 2020, we also made notable progress within our New World Fossil 2.0 program, which includes streamlining
the organization and generating greater efficiency in our processes and work streams. We expanded the size of
the program by $50 million to a total of $250 million in efficiencies over a three-year period from 2019 to 2021.
During the year, we captured total operating expense savings of $175 million and we’re on track to complete our
New World Fossil 2.0 program in 2021.
Against the backdrop of pandemic disruptions that impacted our global sales in 2020, we maintained strong
gross margins and exercised careful cost control, generating operating cash flow of $100 million during the
year. In addition, we ended the year in strong financial condition, with total liquidity of approximately $360
million and reduced debt levels. Importantly, we entered 2021 on solid footing from a strategic and operational
perspective, and our teams are executing against a well-defined growth plan.
In 2021, we are focusing on four key priorities that we believe will position the business to return to sustainable
sales growth and improve profitability over the long-term.
F O S S I L G R O U P A N N U A L R E P O R T
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• Among our top priorities is to further advance and scale our digital capabilities and footprint. We
continue to invest in a robust set of tools to support the ongoing acceleration of this business.
These enhanced capabilities encompass advanced analytics and digital marketing, supply chain
and AI-driven customer engagement.
• Priority number two is continuing to streamline our operations to evolve our infrastructure to
become more asset-light and efficient. This includes strengthening our end-to-end supply chain,
improving our inventory management processes and optimizing the size of our store portfolio.
• Our third priority is to build upon our growth opportunities in China and India, where we have an
established infrastructure and strong consumer engagement with our brands.
Finally, product innovation remains at the core of everything we do. Our creative teams are passionate about
the business and we’re operating in a substantial total addressable watch market, with stabilization globally
in traditional watches and continued growth in the connected segment. In traditional watches, our flagship
brands of Fossil, Armani and Michael Kors continue to perform well. In connected watches, we have a
strong foundation for growth, which includes our feature-rich Gen 5 platform, the Hybrid HR and our new
LTE product that launched in early 2021.
We appreciate the support of our stockholders and feel confident that we have the right talent, infrastructure
and strategies in place to drive growth as we evolve into a digital-first organization. We are also profoundly
grateful to our management and associates for their dedication and tireless efforts that allowed us to reach
this important inflection point in our business where we are positioned to advance our digital transformation
efforts, return to global sales growth and deliver value to our shareholders.
Sincerely,
K O S T A N . K A R T S O T I S
Chairman and CEO
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F O S S I L G R O U P A N N U A L R E P O R T
Financial Highlights
F I S C A L Y E A R
(in thousands, except per share data)
Net sales ($)
Gross profit ($)
2020
2019
2018
2017
2016
1,613,343
2,217,712
2,541,488
2,788,163
3,042,371
770,356
1,099,438
1,340,137
1,358,839
1,578,186
Operating income (loss) ($)
<135,319>
<28,383>
62,711
<424,276>
127,146
Net income (loss) attributable to Fossil Group, Inc. ($)
<96,095>
<52,365>
<3,478>
<478,172>
78,868
Earnings per share:
Basic ($)
Diluted ($)
Weighted average common shares and common
equivalent shares outstanding:
Basic (#)
Diluted (#)
Working capital ($)
Total assets ($)
<1.88>
<1.88>
<1.04>
<1.04>
<0.07>
<0.07>
<9.87>
<9.87>
1.64
1.63
51,116
51,116
50,230
50,230
49,196
49,196
48,468
48,468
48,136
48,323
431,949
500,278
652,766
781,900
932,705
1,478,505
1,604,732
1,575,198
1,658,372
2,186,897
Total long-term liabilities ($)
479,947
541,711
380,764
568,337
756,874
Stockholders’ equity attributable
to Fossil Group, Inc. ($)
Return on average stockholders’ equity
attributable to Fossil Group, Inc. [ 1 ]
439,090
503,054
585,543
576,133
1,006,236
22.1%
<9.8%>
<0.6%>
<62.3%>
8.2%
Calculated by dividing net income (loss) attributable to Fossil Group, Inc. by five quarter average stockholders’ equity attributable to Fossil Group, Inc.
F O S S I L G R O U P A N N U A L R E P O R T
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Corporate Information
E X E C U T I V E O F F I C E R S & D I R E C T O R S
O F F I C E O F T H E C H A I R M A N
Steven A. Evans
Chief Brand Officer
Diane L. Neal
Director
Kosta N. Kartsotis
Chairman of the Board
and Chief Executive Officer
Jeffrey N. Boyer
Chief Operating Officer
Greg A. McKelvey
Executive Vice President,
Chief Commercial Officer
Darren E. Hart
Executive Vice President,
Human Resources
Mark R. Belgya
Director
William B. Chiasson
Lead Director
Marc R. Y. Rey
Director
Gail B. Tifford
Director
Randy C. Belcher
Executive Vice President, Asia Pacific
Kim Harris Jones
Director
Sunil M. Doshi
Senior Vice President,
Chief Financial Officer and Treasurer
Kevin Mansell
Director
O U R W E B S I T E
C O R P O R A T E I N F O R M A T I O N
The company maintains a website at www.fossilgroup.com.
Certain event and investor relations information concerning the
company are available at the site.
A N N U A L M E E T I N G
The Annual Meeting of Stockholders will be held on
Wednesday, May 19, 2021, at 9:00 a.m. local time
in a virtual meeting format via webcast.
C O M P A N Y I N F O R M A T I O N
A copy of the company’s Annual Report on Form 10-K, as filed with
the Securities and Exchange Commission, and the Annual Report to
Stockholders, in addition to other company information, is available
to stockholders without charge upon written request to Fossil Group,
Investor Relations, 901 S. Central Expressway, Richardson, Texas
75080-7302, or online at www.fossilgroup.com.
Transfer Agent & Registrar
Computershare
P. O. Box 505000
Louisville, KY 40233-5000
Principal Independent Auditors
Deloitte & Touche, LLP
2200 Ross Avenue
Dallas, Texas 75201
Corporate Counsel
Akin Gump Strauss Hauer & Feld, LLP
2300 N. Field Street, Suite 1800
Dallas, Texas 75201
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F O S S I L G R O U P A N N U A L R E P O R T
FOSSIL
MICHELE
MISFIT
SK AGEN
BMW
DIESEL
DKNY
ARMANI EXCHANGE
EMPORIO ARMANI
K ATE SPADE NEW YORK
MICHAEL KORS
PUMA
RELIC
TORY BURCH
WATCH STATION
ZODIAC
F O S S I L G R O U P A N N U A L R E P O R T
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W W W . F O S S I L G R O U P . C O M