this front are to of week behalf and the our by past us. all all organization, those would tirelessly joining affected Good behalf and We gratitude of well. hope Fossil afternoon have today. Also, you’re all. we on us of sincere safe on for extend doing COVID-XX those thoughts you the deeply been to lines events to our thank all upsetting On that the of like us to everyone and entire working express
of and the Fossil people tragic globally. have partners associates, many turn to go hearts community affected of this events. to customers fortunate incredible is out Our by an
platforms and We and to learn listen, our foster critically are do using we and and to can greater quality fairness. what resources think
Turning to business now picture we’re we’ve our We’ll quarter pandemic the both to the future. crisis, of COVID to results business on high-level in decisively first financial will reopening disruption actions Since COVID-XX QX taken conversation acted we the the and remarks, and onset a current employees, present focus to and of provide protect trends response to our prepared and pivoting also our strengthen mitigate plans. our rapidly-changing how have and for circumstances, review worldwide, adapt our partners the communities the and position.
planned other the we’ve implemented capital FOSSIL financial of me an and implemented a staggered current align work-from-home for We on our and inventory globally. $XXX to We taken March, expenses and operating majority actions our to We a We the distribution including our expenditures of SG&A. additional the of million enhance revolver furloughing payroll, down reducing eliminated drew incoming employees liquidity. cutting In XXXX. of reduced we portion our proactively our demand. areas Let with program work position provide stores summary cleaning In centers, closed heightened our workers and staffing. to by majority reduced lowered to we practices procedures safeguard schedules, mid-March, of our date. a at
in watches in worldwide Americas. locations and our of the term and a generation March course, the improved higher the as tracking our core business, with traditional February connected and in This, performance January and liquidation lender loan covenants. driven activity net volume Americas. We closures In experienced we amendment were February, as including by Europe Asia our in partners business global early reflecting leathers Fossil-owned for completed have in of wholesale region. store our product, older primary recently to as the discussions at sales above From perspective, our well spread accelerated as virus as the plan, Pacific
and by reviews. products, to Our consumers HR, be Gen strong latest well consumer received have Hybrid X and continue generation connected
in majority impact combination of mandates our the of had shipments and reduced sales closures QX As stay-at-home and took store a March, effect the wholesale considerable retail on profitability.
May and two a saw investments demand own we've globally April in XXX% been e-commerce shift has XXX% sites growth our digital periods. Over these in participated prepare to drive past consumer the prior us Fossil well versus higher year increases significantly capabilities up we on months, the levels. triple-digit to and with The making our approaching e-commerce,
In dictated our the Americas, regulations. we Belgium, and Europe, have our of new system and Texas we marketing that to our approximately XX where and local stores we has a our responsive well highly as plan we as stores, which to have Austria, reopened of XX opened started locations and additional the integrates fact, have gradually color state a wholesale retail and factor platform, currently have provide two drive channels. and several Fossil months e-commerce weeks, the us an programs. doors next additional thus and minutes. all Pacific of conversion QX, in during another in In in some Netherlands outlets next with traffic Italy. XX this few stores open recently and in global our been the region in believe ability to flexible eight across half We have completed fossil.com. locations over geographies provides primarily seamlessly XX critical the our by with on Germany, and XXX In beginning recent on I'll In weeks digital reopening a far. In implementation the XXX phase initiatives Asia primarily reopen with France opened we'll
stores, second challenging and path to nearly align XX% have the to of we from retail in best last at With XX% significantly our Where expect are quarter running Sales the quarter, as with approximately closely the in to the XX% working the in perspective we We however, currently proactively traffic most been two-thirds inventory closures reopened stores, wholesale effect XXXX have year's of our May higher. levels been incoming these on at conversion reducing line has forward. be partners levels. for is top of a one XXXX.
similar globally Our reporting are trends. wholesale partners
at As the balance the XXXX, company the of the headwinds multiple we year state earnings we of pivoting program. transformation scenarios anticipated and navigate New the future When under February, efficiencies year-end and call described World action we've looked and opportunities channel against Fossil on business. of our on our outside developed you to capturing for to in plans focus spoke plan have our prepare the for to we wholesale
will elements and success World on faster remain specifically on strategic COVID they be innovation, to our opportunity believe and our strategies of has driving Fossil. Those We current driving highly four us XXXX. transformation important digital pandemic, e-commerce exceptional continuing the also to program. particularly commercial of delivering on outlined we That move for said, and India, include to channels, Fossil New China our relevant, Notwithstanding transformation environment priorities New these expanding storytelling executing strategy, and commercial transformation certain long-term implement the World X.X. in compelled our operating and Fossil in and
innovation. and storytelling discuss I'll First,
effort innovative see With as our fewer range opportunity with ever, of not celebrate consumer. focused and our new better the on our the tell in such reducing we stories are relevance our products, to this an mechanical an to icon, We dive our to and but only as platforms. environment than shift significantly digital products iconic more product our focus the challenging to categories and and to businesses, dramatic most
developments critical in introductions the New require will lean sizes in great of leathers current shapes in our great with into X continue continue jewelry. will Gen smaller year. flow we enhancements, in traditional and Hybrid great brands, experience of to the and upgrades that HR in the and stories watches Exciting software meaningful styles value. and balance style, through great strengths These times into
the and where transformation. priority, second really to the the we're Our putting strategic pedal in commercial floor areas of is one
that our We recent years capabilities time to our helping this of toward during us heightened digital in have deployed substantial is demand. resources and increasing customers serve
that third-party support represent Fossil Collectively, expect sales worldwide this of half in a our this set in second a the XX% in nearly to business larger channel and DTC robust direct-to-consumer stores, our Today, e-commerce. of much We encompasses have of we future. business direct-to-consumer tools invested retail year. fossil.com, the can
increase Looking significantly globally more approximately XX% opportunity to specifically at over current second our of levels the an sales own year. e-commerce, to penetration we XX% the there XX% quarter believe first for the is quarter and nearly for from in
contraction trends secular driving know, channel for you have a years now. the in some been As wholesale
expanded shift into through support We that preparing commerce business robust and have more digital a online much been our marketing capabilities. and to leaning
disrupt segmented trajectory growth short-term, performance opportunities. a in year-to-date growth in opportunity and as long-term both assortments. and In are of third execute marketing year, strong continuing continue these priority, strategy India. our double-digit compelling localized strong China The this these the delivered COVID strategic but in view our to our to XXXX, seeing centered now we proven of are markets around may Moving to against China markets we we and and impacts expanding in
COVID. New Moving World our expanding current program now a result as to where of Fossil we're significantly
progress XXXX, As making by and $XX streams work rightsizing million. been operating have and efficiency cost reduced structure. driving the you expenses good our teams throughout In toward processes our our greater organization know, nearly in
to of expand business, the we environment New World our current program. on Fossil the decision have made Given and our strategic state X.X the perspective future
actions $XXX permanent shifting increases Specifically, This from $XX reductions. in is a to we expected year, of million million portion incremental XXXX. of approximately to this immediate savings total our savings which into are our benefits the COVID-specific generate
will as We more forward. than learnings to efficient the and us well Our and the can guiding There are ago, this from notable from do a three even due leaner improved months today more less. Fossil that emerge digitized crisis organization. teams remote organization. but are are throughout more on a We with are stronger, last believe efficiency and much focus leaner months functioning several basis
our employees Our impacting us like citizens. of many fashion environment. compelling us Having can close way one told as pandemic make in by to every made that new business being e-commerce environment. product nimble capabilities global scalable. work are category, we've is jumpstart investments highly to more current in digital helping despite new watch are and the each stories our and a a I’d is The that fewer the ways adapt this the acknowledging
uncertain with support of to now, We to the are appreciate communities a over navigate the call high of these help turn of discuss position our level financials. Jeff mind, and Fossil through And stakeholders. associates the to flexibility our us solid top greatly our financial of focus on and maintaining business I’ll We the dedication times. a managing the
