Dear Stockholders,
Over the past several years, we have been challenged in an unprecedented
manner - first with a global pandemic and now with a geopolitical and
humanitarian crisis in Eastern Europe. Our hearts and prayers go out to the
Ukrainian people during these devastating times. Despite these challenges,
disruptions and hardships, our teams have adapted and supported each other,
our communities, and our company. We are incredibly proud of our global team’s
agility and commitment, truly a testament to the “All for One” spirit that drives
our Fossil culture.
Amid the pandemic disruptions of the past two years, we transformed and reshaped our business
to a digitally-led organization through the “New World Fossil 2.0 – Transform to Grow Program”.
By reorganizing ways of working, reducing our reliance on physical brick and mortar distribution and
accelerating our investments in digital and brand building, we are on a path to sustained, profitable
growth. In 2021, we grew worldwide net sales by 16% and significantly improved our profitability,
delivering earnings per share of $0.48. Additionally, global sales generated by our digital channels
exceeded 40%.
During the year, we successfully completed our multi-year work under the New World Fossil program,
which exceeded our $250 million cost savings target. With a leaner cost base, we also improved our
balance sheet with a $150 million notes offering, ending the year with over $400 million in liquidity
and a more flexible capital structure.
Brand building through product innovation and marketing remains at the heart of everything we
do and 2021 was no exception. From our Limited Edition Space Jam collection and celebration of
existing iconic watch designs to our latest generation smartwatch, Gen 6, we saw strong consumer
response to our brands. With product newness and storytelling, we drove a 22% growth in traditional
watches. We also saw jewelry emerge as a category that is contributing more meaningfully to our
growth. While this is still a relatively small category for Fossil Group, jewelry is a large addressable
market, where our design and distribution capabilities create a natural growth adjacency.
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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S T R A T E G I C P R I O R I T I E S
We are executing against a large and growing watch market, with favorable trends in both the
traditional and smartwatch segments and in even larger addressable markets in jewelry and
leathers. Our 2021 results reinforce that our strategic initiatives are working. You can expect to see
us continue to sharpen our focus on these areas that are contributing to our business performance
and driving value for our shareholders.
Our strategic priorities remain at the center of our growth plans for 2022 and include accelerating
our digital footprint, building brand heat through product innovation and marketing, capturing
operating efficiencies and driving growth in China and India.
Our ESG program, Make Time for Good, reflects our strategy to be a more purpose-driven organization
and enhance the communities in which we operate. In 2022, we look forward to sharing our first
sustainability report.
L O O K I N G A H E A D
In these extraordinary times, I am extremely proud of what our organization has accomplished. As
we look ahead, while the macro environment remains dynamic, we are clear about our path forward.
We enter 2022 with confidence in our positioning and our ability to deliver sustainable, profitable
growth. We are grateful to our shareholders and remain committed to driving performance that
creates consistent value.
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 ($)
2021
2020
2019
2018
2017
1,870,036
1,613,343
2,217,712
2,541,488
2,788,163
966,374
770,356
1,099,438
1,340,137
1,358,839
Operating income (loss) ($)
92,637
<135,319>
<28,383>
62,711
<424,276>
Net income (loss) attributable to Fossil Group, Inc. ($)
25,434
<96,095>
<52,365>
<3,478>
<478,172>
Earnings per share:
Basic ($)
Diluted ($)
Weighted average common shares and common
equivalent shares outstanding:
Basic (#)
Diluted (#)
Working capital ($)
Total assets ($)
0.49
0.48
<1.88>
<1.88>
<1.04>
<1.04>
<0.07>
<0.07>
<9.87>
<9.87>
51,961
52,777
51,116
51,116
50,230
50,230
49,196
49,196
48,468
48,468
487,108
431,949
500,278
652,766
781,900
1,368,719
1,478,505
1,604,732
1,575,198
1,658,372
Total long-term liabilities ($)
367,714
479,947
541,711
380,764
568,337
Stockholders’ equity attributable
to Fossil Group, Inc. ($)
463,226
439,090
503,054
585,543
576,133
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
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
Randy C. Belcher
Executive Vice President, Asia Pacific
Holly L. Briedis
Executive Vice President,
Chief Digital Officer
Sunil M. Doshi
Senior Vice President,
Chief Financial Officer and
Treasurer
Steven A. Evans
Executive Vice President,
Chief Brand Officer
Darren E. Hart
Executive Vice President,
Human Resources
Melissa B. Lowenkron
Senior Vice President and
General Manager, Fossil Brand
Mark R. Belgya
Director
William B. Chiasson
Director
Kim Harris Jones
Director
Kevin Mansell
Lead Director
Diane L. Neal
Director
Marc R. Y. Rey
Director
Gail B. Tifford
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 18, 2022, 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
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