and Kosta, everyone. Thanks afternoon, good
quarter quarter performance. Sales third currency. XX% the in XXX in decreased million to and Turning constant XX% decreased to
price were year, brand this Third quarter less and exits. store and sales license closures sales negatively impacted liquidation off by
exits, core and a Excluding sales business roughly high-single with second point store digits basis closures were XXX quarter which performance. headwind, our declined underlying consistent
strong strong in to continue X% to Offsetting both India Korea, double where growth double sales last in growth Americas Asia, we in Asia compared and quarter, growth, was where digits. the or digit offset XX% year, driven in and grew regions, EMEA this Performance the In mainland currency. declined by Japan. in see of partially constant declines China, by which
these wholesale stable. in at EMEA high traditional decline the have direct been The core While in rate. Americas continue a regions to in double-digit channel channels and sales
Americas and was price by declined with the the in selling performance The off driven channels. in XX% wholesale consistent Overall sellout sales the roughly wholesale. in quarter, primarily trends
the decline. level declined declined. contributed channel to accounts in and for by connected geographies driven Sales performance the wholesale most also lower liquidation a expected, as of as Europe in XX% addition, the XX% quarter, currency, In product
Within X%. our direct-to-consumer comp business, the sales overall for retail our quarter decreased
e-commerce a were positive comps performance up improved comps high-single double in the digits price comp watch. were down quarter, outlook the quarter, full digits While our traditional driven Fossil international. by And in also
the closures. Overall sales by direct high-single channel quarter, digits driven in in largely and store decreased concession the
stores third quarter year stores. of the We have quarter and end XXX last of closed with the XX since
to Overall, with watch for X% declined sequentially. in watches the currency constant continuing traditional improve sales quarter,
high-single declined sales the low-single decline in quarter in third double Our and digit a traditional quarters. as to several decline compared quarter digit previous second digits watch
the compared a watch year. to watch sales of to digits or decreased last due reduce $XX largely double liquidation XX% total Connected which sales quarter, as levels represented in million quarter, in
impact flat business the excess year, liquidation Excluding grew last while mid-single exits digits, connected of store for display watches overall quarter. roughly were the closures, and from watches
basis obsolescence of a change and XXX year impacted were to XX.X%. negatively additional customer Compared third margins the inventory costs. last points from certain to certain reserves, year last the classification inventory operating unfavorable India, decreased in costs margin higher moved Gross to in impact by quarter from expenses relationships product currency, of which costs
through on regional in of moment. the on mix guidance gross impacts optimization program. efforts implementation. quarter impact a in New X.X tariffs offset margin limited of impact These Tariffs World were timing the margins, given had fourth quarter our Fossil our third address by I’ll unfavorable partially
in impairment the basis, asset included in charge, non-cash million underlying an charges. restructuring impairment quarter operating compared adjusted World by On expenses benefit charges, and $X restructuring $XX and infrastructure as our expenses New from Operating $XX declined closures our to asset intangible million declined X.X million a intangible and $XX last year, Fossil as New World program. million and Fossil well store initial from costs lower program, excluding X.X driven
of million. an unfavorable effective in Income The quarter mainly resulting taxes $X expense the tax $XX the by million deferred million Income year pre-tax tax prior were asset and GILTI of recognition and million. pre-tax in impact $XX the $X valuation and was of the Tax tax Cuts Jobs Act negative was losses allowances. approximately income rate third and driven of provision from the
result provision our of the on the GILTI GILTI, taxes effectively double foreign Regarding in mechanics income. of some
to subsidiaries, assets operating those our our our effective international Additionally, establish and losses jurisdictions, continue given the valuation tax rate. deferred tax on increasing U.S. thereby we certain allowances in in
quarter, of included loss we non-cash $X.XX New diluted share. which intangible net impairment charges Fossil of $X.XX of World share, restructuring diluted per asset per For third charges the a per and diluted $X.XX share reported
mainly to year-over-year lesser split and was intangible the operating lower driven jurisdictional EPS mix, impairment declines. unfavorable charges, Excluding decline restructuring by and non-cash driven by a degree, sales profits taxes, asset between
year, of our EPS and Currencies, an charges EPS unfavorable Last $X.XX, quarter had on third $X.XX. in quarter. both the third foreign hedging impact currency earnings translation restructuring impact impact operating include and contracts a was including on $X.XX of our the
lower to levels portion product timing the was driven end QX launches. sheet. increased year, in the Inventory based A X% the at XXXX balance Moving connected of the the of by inventory quarter. last on of increase
the than the in to due hired also quarter. lower are levels expected inventory third level sales addition, In
We’re of and extended term debt $XXX our our five and rate year million. from The the pleased down strengthening a our sheet. reduce million improved more ago with We covenants. to net financial progress $XXX million position $XX interest balance by cash refinancing broaden years, debt of than with levels our continued the agreement debt
times. We X.X net leverage at continue to ratio low maintain a
$XX EBITDA months XX quarter Our million, adjusted the trailing adjusted EBITDA a for in $XXX of was result million.
Based on and and updated guidance. XXXX our full guidance. adjusting our year we’re our third fourth Now, quarter quarter to turning results trends,
We range range expect an full points rates, closures The store XX% year changes in to includes of currency of prior headwind compared XXX of year. XXX sales core contraction decline resulting foreign points of high-single approximately sales digit a from from basis the the to in from business basis sales range and exits exchange underlying headwind and XX%. decline a when
$X.XX quarter our Compared third more at driven prevailing lower reflects maintaining continued assumptions, to and double generation sales previous guidance, our in by and connected, growth channels. fourth in for Pound Within we’re guidance, rates decline the British currency older rate the digit $X.XX Euro traditional modest quarter with wholesale exchange sales and range respectively. updated foreign our performance,
in We’ve to X also and include for Effective results, for traditional third the for watches margin smart year quarter updated the tariffs. XX% of reflect China. and September list list impact requires tariffs produced gross to our watches Xst, guidance
inventory there from Given the the was third quarter. impact in X flow, no timing this of incremental the virtually
able the Looking million. to quarter, gross have related actions. this our $XX impact impact fourth million through offset now million margins impacted a includes of fourth a on basis been approximately by gross $XX $X Therefore, guidance sourcing to ahead to quarter negatively gross various approximately tariffs. would tariffs We’ve margin
we that on to year. not providing it into an next additional identified have important to is we’re XXXX outlook offsets today, While tariffs move as we note fiscal
no million. incremental today, that on on and tariffs provide a XXXX changes in million February. to assuming tariffs estimate impact be as So, update the to tariffs are from in additional in provide $X full the $XX year guidance XXXX place basis, We a we negative of currently an when further would we
we margin, year Based the on margins our X.X% operating terrain updated gross and for for sales to now X.X%. expect fiscal
to Excluding range operating approximately which restructuring expect X.X%. charges, expected the we name and $XX from be QX to to million is X.X% impairment, margin trade adjusted
sheet, the planned some the to inventory balance which first Year, of the XXXX, receipt support of to New higher we level In of timing in will given lower end sales end with at terms additionally XXXX. inventory expected Chinese and of in December the year levels of than quarter the the require
updated of the inventory planned, year our is we a over lower to expect at now levels modestly than that now increase higher forecast last end to Given sales inventory of with originally see digit expected double year. the be
back few And before now, Kosta call for the to over turn I’ll Q&A. comments
