FOSL - Earnings call transcript Q2 2020

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Operator

Welcome to the Q2 2020 Fossil Group Earnings Conference Call. My name is Adrian and I'll be your operator for today's call. At this time, all participants are in a listen-only mode. Later, we'll conduct a question-and-answer session. Please note this conference is being recorded. call Christine the Blueshirt of turn Group. now over Greany to The I'll begin. you Christine, may

Christine Greany

will Boyer, actual and would during that everyone, additional be during contains could today Kosta CEO; Chief SEC. made the number CFO; call us for XX-Q differ available from EVP McKelvey, those remind on results is are available Officer on actual information and from Fossil and such call. statements of Jeff forward-looking you cause readily and and policy and information Greg reports Chairman Officer. Hello, call materially in information Kartsotis, you discussed to filed Group's the to could this materially thank this a I conference joining differ the with Commercial results statements X-K Operating and factors and company's like forward-looking Chief that us. With that concerning Form

call forward-looking or assumes In or no Fossil find today any non-GAAP law. future as of information, is of otherwise, other addition, to the on earnings discussed as call Please to this was the publicly except that, over I filed events With you formal Fossil's Kosta fossilgroup.com. and regarding required information obligation begin update a a that financial in can new by result revise statements note which to reconciliation the whether on measures release, and X-K section remarks. Form in available Investors will turn

Kosta N. Kartsotis

us Good unprecedented doing hope during you're afternoon, We all today. times. and joining well for thanks safe these everyone, and

tragedies prioritizing employees, we time, seen that At and and our underlying world, have exist bias over to the communities safety in racial disheartened of same the we've continues our all pandemic customers the the country. and we the are the to remain committed health effects systemic by the we where operate. As devastating

change. doing an part As positive organization, to our foster we are

shift stores the to remained we for size to on expanding communities New for doing business; the leading World year. in June, example shortly. of the began out sites navigating top increase sequential to our net channel constant of own our From flow. and we the on and wholesale despite Fossil In digital strategies reopening QX of respected in current to across to and States. opportunity day X.X players accelerate of the We business the all globally commercial United strategic at as QX. accelerated the on We during expansion focus global relative Americas, XX% in business line highly Fossil reflecting Asia of landscape COVID third-party driving delivering year. and of a to decline From reflecting and XXX% on regions locations delivered retail More heightened closures are our our within implement persisted however, e-commerce and part this were planet, our $XXX to storytelling perspective, trends most of XX% by of program. our innovation; a our QX, much We have this see, did increasing June. Fossil of for people. resulting the third-party New sales dynamic continuing exceptional QX. notably Those focused and environment, a basis. good executing we our business e-commerce economies China e-commerce Europe sales early committed has performed increased caused reopening nearly than the the broad-based significantly Sales and a spoke digital on among up channel essentials and and order on and pace many stronger-than-expected latter transformation, improvement and priorities these store re-openings include: throughout prime store quarter, wholesale perspective, recoveries in digital Since India; our a the in the beginning outlined and period, of program you currency our pace operating us in World Fossil of The the our slightly million, across May four better the a

We of our Tmall, is of include XX% as which of approximately XXX phase stores year performance by a of doors from sales in latter quarter. who stores and channels mix retail of e-comm of business. started reopening developed July. XX% across the own our sales XXX all wholesale This reopened growing third-party our to wholesale.com presence. our stronger e-commerce XX% online currently such where strong have Americas, also to of locations saw last across geographies opened our sites not XX all wholesale Core QX region, the throughout during part partners Amazon opened the our with quarter the in well shifted second and year. Asia-Pacific In and the wholesale reopened. with does a have channel, Fossil stores, end nearly and we approximately this The digital have and we In capabilities the part remainder have continent. have essentially we the In during Europe, marketplaces,

government closed, and India pending Australia in locations Some direction. remain

end is comp trends regions, traffic with the quarter, by about were quarter and significantly. the similar up second the fairly XX% conversion and across of During all down traffic conversion

safety of similar said, year, That spending is in the to containing continue As traffic we with the and health significant countries consumers conversion return States, former slow and appear here the concerns. levels, the true to to back to uncertainty particularly trends. across Many we globe. the and given are which half facing United the states and expect we are look virus, ahead regions, struggling

business In cash, took and increase and time steps taking of first position. costs, of During financial our reduce strengthen manage our financial levels, preserve inventory to actions this half operations and to XXXX, are significant we our uncertainty, the disruption we to flexibility.

a landlords regarding forward. our partners productive path We discussions mutually to continue beneficial have and licensing with

estate the we'll leases in to next the portfolio. lens percentage of taking evaluating productivity front, years, opportunities are On real a due significant fleet. of the increase our coming few a to we critical With the our be

Importantly, we're strategic the making earlier. priorities I mentioned four against progress

storytelling style, bring year, value new and traditional engaging be and consumer and category. the brands, stories are innovation, first also critical with to connected In our upgrades to while of The we'll this strengths the great bringing second enhancements and our of we and marketplace. to shapes watches, leveraging styles the half the introduction

of see collection. Blue watches We perform globally, our dive-inspired to especially Fossil the assortment in continue well

Fossil you bringing stay healthy, mid-August can excellent oxygen function. help into to Our features year. smartwatch app we're continue consumption and Gen With the watches X our current garner a to sleep market our new looking adding tracking of to LTE this expand consumer payment and channels distribution forward And contactless feedback. rollout, later to

growing expanding and well media with in things programs gravitate digital. to presence consumers our e-commerce our digital emerging Additionally, marketing as trends and all tandem social are we as consumption as increasingly

second Moving commercial us to digital priority, of now our online transformation. fast-forward among our expansion The leverage consumers. capabilities adoption of strategic to the is enabling

to channel and are fruit. in XX a digital investments our have accelerated to online the e-commerce tools We digital beginning XX new platform, bear investing for last programs, months, the marketing in which

are fossil.com to have online lends cube we the the itself economics. our and in pace us high-value an excited already place expect The particularly include economics and within as QX. our We're represented which small of continue to are infrastructure business and about e-commerce growing the channels, digital drive and model and well digitization visuals e-commerce of a striking mix. well-suited across Watches in and third-party own to great nearly Fossil, digital percent warehousing are the overall to marketplace distribution and Our channel performing sales systems, powerful margin accretive. XX% of sales branding, help scale. At

fossil.com, to shift portion we profitability the margins our we expand sales of touch greater direct-to-consumer expect that strengthen and As in over our gross long-term. particularly to a segment points,

double-digit opportunity these In a China Looking and in assortment at on third we our marketing, focus drove which continuing by XXXX, gains we're priority, our in supported expanding markets. India. strategy implemented localized segment strategic to

pandemic India second of versus to last We markets continues stabilize quarter. affected important the and business these vehicles measures, by been China be be recover. to Mainland to begin While China we rebound. both our Despite will stay-at-home in Fossil market for year XX% growth impacts, Mainland has conditions believe the by faster grew when

Turning to for our million New to deliver pace XXXX. Fossil, we're World of savings on target $XXX expense

the organization remain will We structure for driving efficiency key continue opportunities to the and throughout priorities. as additional greater look rightsizing cost

fall approach on fronts. several we we well positioned and As we're believe holiday,

collection the products have innovative digital customer We interface enhanced of across fulfillment, focused capabilities greatly and market a and marketing. functionality, in

near-term, the of retail remains number Our view in the macro marketplace of given uncertainties. the cautious

us reality, a powerful and and our strategic that to as farther business long-term. actions, strengthen improved to we we model focused our structure an new and more assortment, and Looking cost confident digital enable adapt with stronger over a margin as are more channel out, mix focus a purposeful the will product emerge

organization. turning we our thanks and Jeff, express want appreciation over to entire the Before call the to to Fossil

done job and together Our tremendous adapting quickly teams a environment. have coming to of current the

And ongoing to unprecedented support want detail. for financials the stakeholders ask times. Jeff also thank of these now We in discuss our during to their all I'll

Jeffrey N. Boyer

Thanks, Kosta.

the navigate increasingly longer first As ability on we confident the the near we focused the half the liquidity in up of term. remain our feel COVID highly and impacts of to over year, wrap term of

a We with successful due with us These than costs through the greater reductions. with have of expenditures our than across and $XXX cash million, working to near-term outflows. better managed provided inventory second management proactively coupled of flexibility. combined higher revenue, expected timing lowered capital with have actions, amendment of cash and ended capital reduced quarter position requirements, aggressive significantly facility, credit organization, primarily the We somewhat our the anticipated

reopenings the order latter store Asia-Pacific, due ago both reported in slightly currency, store and contractions to throughout of at line regions during the than sales the all better Top lens, of the now EMEA quarter. QX a came of XX% From was in the quarter. results mid-XXs, the XX% down of flow wholesale net in a Americas, better the impact across year primarily and $XXX much and sales year-over-year. reflecting Moving XX% regional P&L, three performing came down than pace in closures to ongoing versus strong expected, which the million, part constant

saw constant In e-commerce we with mentioned, nearly Kosta XXX owned the direct-to-consumer quarter, delivered Fossil XX first of XX%. business constant region, in ending while our in quarter Fossil we stores, currency Asia-Pacific China total XXX%, growth decreased XX% delivering what the quarter to second on quarter to a basis. the similar outperform, permanently sales in closed currency sales Mainland of locations. the as and continues global business, comp growth our the to Within Within a

with currency, XX% in constant Turning to watches in category of watch watch declining total total performance, sales XX%. watch sales also decreased Connected quarter represented traditional which XX% declined XX%. sales the

ago. Second abatement partially activity gross heightened basis margin XX.X% which sales year versus primarily a was to quarter and from traced increased costs XXX XX.X%, promotional The be year can increase ago. higher offset points a partial mix up cost, freight of e-commerce by and royalty of was a

We $XXX though us expect foreseeable versus pressures over million strengthening we SG&A quarter, promotional ago. $XXX post and the initiatives believe help our substantially contribute our and down to should year channel million second expense future, the margin environment long-term. was to the the remain assortments fairly for a partially offset in product shifts around

in a buckets, combination progress lower labor. levels benefit in and pay our Fossil to expenses generating of second services including program, salary make quarter. and professional reductions travel, fees, million, contract the continued several Total reflecting $XX spending across good We million a New against of operating force, marketing, and $XX World decreased reductions, X.X

ahead, evaluating further be at a estate mentioned, Looking opportunities Kosta to expense as real savings. closer and look capture taking we'll our

earnings years, with We nearly the but mix us digital XX% portfolio flexibility driving operating continue an of $X.XX World favorable a with earnings three and of perspective, the Fossil have to per lease next Currencies, diluted had EPS of of the of a net share foreign From New charges strengthened a the $X.XX. included expirations translation direct-to-consumer both impact physical over loss including touch channel, and representing provides which restructuring contracts on points. impact $X.XX. hedging currency and impact was

carefully equivalents balance and lower of This $XXX Looking a to earlier. I cash to and ability manage compares reflects and million, totaled and we position million discussed of of cash QX ago, receipts. a inbound primarily ended rate, through the million. of XX% which cash inventory down a from move debt reflects product burn cash year the to million second at total end quarter $XXX $XXX flow, at sheet cash Quarter-end connected our $XXX with continue and the

QX balance create choppy continued anticipate environment. resurgence the last to year, likely the compared factors XX% sales to expect Taking consider into that to of are uncertainty macro these we XX% potential approximately by to account, net we and As a we decline year.

closely we're cash managing cost carefully base. and and liquidity, our such, controlling planning As inventories conservatively

As in full position strategic reductions achieve actions taking, Kosta combined XXXX. on year Kosta mentioned, the begin program we operating that priorities to New to we're million deliver conditions with remain under improved when focus macro totaling particularly product around track $XXX X.X World channel believe the Fossil our performance We discussed, will to and stabilize. us expense

us to turn Christine take to questions. call Now, I'll some the through Christine?

Christine Greany

continue turn to the few the that a over are Jeff. mind going investors Wells we'll and for Q&A. to of top start Thanks, Fargo then call to questions I'm with

we I'll can us first, you to on at Fossil? from shift business? about economics wholesale with think should through So, walk your the How And Kosta. digital e-commerce the start

Kosta N. Kartsotis

Sure, Christine.

of watch the four First has that retail e-commerce the actually shift a years from changed the to lot has all, over a business accelerated the has that pandemic been part last of and process. large and

sales shift short this and ago, years towards our order. on XX% Four from us, e-commerce. and way been wholesale about its XX% our XX% has to pretty For less was it's now a it's wholesale of

the So, been consistently has pay result Since course, increasingly a digital in capabilities owned of sales. And off e-commerce the was third at includes and our recently trending It full-year total several anticipate more the our business our triple in over digital past marketplaces, we March, XX% that business, our third-party growth our quarters, have seen digit owned for we've XXXX, that been will it and as of level. which total QX. of about a of investing and e-commerce a be pandemic.

in attractive us our very So, and the are economics on for e-commerce business, particular.

company mind, First the average, of accessories but of advantages keep is gross also all, watches and margin number for in than a e-commerce. higher the in there

cube causes which First the costs, earlier, online low mentioned small than of fewer wholesale. all, in we there's also freight size, SKUs which but

we just So efficiency of least XX% the that. SKUs at inventory imagine imagine fewer and have

as better paid get points also, it's since and sale, locations it's of retail, easier – in stay sizes conversion fewer have align in watches demand like cycle we and So no got it's many there's at a accessories and stock, easier fewer much not and as there's much cash to There's footwear. to for we supply immediately. apparel

for So our return rates are running X% to XX%, which is a us. big advantage

of and we addition, place the already systems, in warehouses automated In terms our new platform our have infrastructure around in world.

So, data. ability to up automation new use fact over e-commerce more that to our example of One year-to-date. should robust take just very email that time. we through get is and scalable. our the To The increases our this, communities the accelerated implemented bottom XX% flow-through we've and the more line engaged file highly months very of advantage over personalization, our the system automated is and accretive is significantly is last build state-of-the-art in the platform investments and XX and and highly larger so is

to a global a automated on we're and platform It of storytelling, a e-commerce product, and overall, platform. art and a marketing and is mission for data-driven with science, combined watches accessories. innovation great So, digitized combination really build

Gregory A. McKelvey

further to illustrate a as And couple Kosta's points if data well add could of I point.

our .com mentioned, total sites, wholesale. channels: includes pure each. a growth little bit own give on e-comm color three he and As you play of I'll our

driven in For conversion. year-over-year, own direct-to-consumer traffic of both by is sites, growth increases XXX% significant which really our delivered and

benefits year-over-year, had largely the sales a in our platform we from fact, force conversion more of improvement than Xx implementation. In

algorithm, an by effectiveness. and driven content up-sell feeding just better our is as and cross-sell algorithm that of in driven part way, site. automated the That's first customers relevant shopping The are

site. The just how well is second we've the optimized mobile

easier a to it's we us up play XX% designed quarter. a believe combined With for checkout only e-comm, includes much simpler customers. future going of and others, Tmall, is that of what So browse and we're Both the products. given and marketplaces was to conversion these in sustain level jd.com growth cart be process with. really like support able have pure new growth We've to Amazon, which

down Prime orders the for However, which in Amazon quarter year. was only in both of by July. second to moved out in selling it significant the US essential goods a was Day heavily portion the quarter Prime the we of significant and in Day was weighed received in anticipation Europe, and And normally of quarter, later the

we traditional improvement expecting sales in we we wholesale.com. we the wholesale.com, continue of about the with to don't and So, are benefits that to starting our talk online, growth but drive QX. already licensed has back ours significant down on digital the been of half have through and in trend brick-and-mortar high double in see often partners the go year that as boutiques and imperative to and play that are strategic the helping growth And to and double-digit a continue seen of pure

that expect I'd the We goes as as just performance that well. point on. year to strong continue last is we had the the in thing out very And marketing

spend held line was decline, in the so down, we with roughly our Although rate. revenue year-over-year

the crisis we our in a conversion driving had pandemic mix dramatic to and investment. soon we've the into returns that a as that digital As quarter went And marketing. shift on historic plan delivered implementing in highs the hit,

platform there basis. ROI to daily of of implemented us on One are is our real-time we've a analytics our allowing key marketing just that returns enablers – the do real-time that's the decisions optimized

at our note stores XX% with bodes that's as through benefit, majority closed. future uptick growth that new acquisition of our substantial year-over-year. the the well file mentioned, in for that significant I'd our And is Kosta our Another customers of

value ours of customer strategy database off to is large clear drive lifetime a as the So value a ability well. lifetime –

All for performance all really of digital this around indicators would and going channel forward. great sustained leading growth is in I strong the in say

Christine Greany

for What burn initiatives half? Greg question the and is you've for year? and And place Jeff, liquidity beyond your the opportunity Terrific. you. are Kosta. areas put Thanks the cash other of there the during first remainder expectation for of in

Jeffrey N. Boyer

Yeah. a question. Christine, little bit on good first Thanks, Focus QX.

own a all would we one, QX that of the toughest do – what and the be most challenging and closures look cash from given depth really at extent we believe closures brick-and-mortar substantial, QX doors, meant store As extent those our and the standpoint, our as cash drastically is of both – of which are of business, still part closing and as the down the locations our wholesale reduced really well fairly flow.

Going on quarter, and aggressive mean, were the XX% pretty we sales did we that into on XX%. would many cash We so be the conservative what down elements. other very between got flow forecast would

expect through job job Fossil a world in quarter and second elements we the the to that the the So stronger major us had cash to In continue. managing a we hard a some with the managed on of we half that was cash to good really driver to all as manage And rent of the the tough, in primarily teams year, quarter. program the But structures tough an good work many from reduce sales a of focus same well well, to performance a as the absolute And spending quickly the work our very very our as a that primary we're the QX. fantastic did receipt outstanding back had. we job for payment equally that we the outflows liquidity really minimum. really appreciative of – positive and around standpoint. importantly, be did we inventory had overall management organization did continues in And of really lastly,

of right sales that how year our the We cash go if caution around and fairly now, now. our to expect burn we're And that outlook, consumer change. we'll sheet be to our expecting assume fairly and resurgence expenses the or the balance actually outflow we have of But one of But outflows environment. balanced, right we're a the back caveat the as year as balance have any well it overall. in could the in of given managing through half is major inflows back cash modest inflow continue a does in Thanks. balanced there's improvement overall to half that management I'd balanced virus,

Christine Greany

Greg. Thank see expect is you. in to What view question category? growth connected And business, for Great. the that your when you of Greg? Last do

Gregory A. McKelvey

category, confident substantial to remain us We and which Yeah. in grow total opportunity. continues offer addressable the market

this business. We also ability in to very grow remain our team's confident compete and

us, For product. with everything starts

software step To designs functionality, app watch X in ways do frankly, and that engineering of substantial upgrades business. users management, make if selling teams Fossil the customers with see product life last And on the but point, to or sleep including battery tracking, calls we release have we watch in face to our fact, including user allows this around and work bring battery product allow optimize that fall, more. smartwatches, life significant Later platform in future the our Fossil us, about including keeping even relevant iPhone only more our that design another continue exclusive our are this watch, inspired control launched not improved also, their new software Our and that streamlined life lifestyle in user choices. to performance then that's an well. we outs, to offering health feature their Gen which innovation roadmap phone the keep on and paired upgraded answer battery month, major and and just personalization, continue will that which much which to to strong or up coming tracking, only feature much includes frequent during have market, seamlessly will upgrades

year return initiatives smartwatch under business XXXX. our position core to way to in growth We have that got this

and and today. this consumer channels, the expanding the while we before direct in accelerated into with also electronics began brands, and the same connected built the We've presence SKUs core telecom around of reducing As set have our and year keep at discussed implementing to reshaping focused the COVID sales, We're We've perform focused continued growth. we includes more to connected wholesale. well pace a At This that consumer a and end beginning the a to SKUs innovation. online in strategy of business. brands around emphasizing crisis, the will profitable half, we time, certain been business much exiting are simplify platform more and the with plan first crisis focus core. implementing year a it for during channels

In addition our built LTE launching I X the this year software on to Gen launch our we been LTE mentioned we've cellular that we'll also several of platform features channel August, opens products successful we're and and in it this that X perspective watch yet on release on is distribution later that software have that hard from as at a meaningful opportunity. first particularly to that next be The us incremental to up announced Gen and year work interesting X will year. a throughout telco Gen the new version growth connected

innovation is creating the summary, along point the connected. our of wearables we path near-term growth and And to is with make refocusing XXXX in on happen where believe again. to business teams the in turning that a So continuing push think profitable

Christine Greany

Appreciate of line Ike please and ahead go ask Great. some open questions. additional Operator, you could to Thank the you. Boruchow that.

Operator

now Thank your Ike, you. open. line is

Ike Boruchow

Hey. from Thanks, us. everyone. questions of Couple

a remaining to allude you little in here heard pressures promotional elevated QX. I Jeff, So,

revenue you're – what EBIT and gross is and maybe the the the any the promotional But margins gave outlook, environment the that through just You decline promotion, could really us could chance helpful. expecting talk perspective? margins revenue mean an from which you us

Jeffrey N. Boyer

successful in discretionary not back we'd that We're we out put won't really a back pressure spending know quarter Yeah. giving pattern an a guidance, be got category, promotional of We you've It will there'll COVID to of (XX:XX:XX) to somewhat I in Ike. together, do terms all We overall. in be be terms we little this half you, but but model crisis for consumers of (XX:XX:XX) were way performance the probably of go into believe the the EBIT as more margin intensity, a coming promotional. and the think accessory perspective still year.

think do points it, the to in where of you to and build some to this consumers modeling, these business be that's below at way all continue as we now. year, pressure probably the about You think in probably the couple a promotional high-XXs times that is we're going and as attract right about almost

Ike Boruchow

line, Fossil savings. it, New then Got on World the and expense incremental the

year, I are But it, this said $XX in million same true? next the that think rate that curious to is the also it's And does added year. of run what other incremental you those then, exactly kind – you comprise? for that

Jeffrey N. Boyer

combination savings spending well. a as some – savings as well organizational of as It's expenses

reductions a As crisis, in on look company, we going we more took going the we're to to aggressive at that. a made bit how some what's more through the we and and adjustments got organize

well. to a into and viable World when we expanded that carry We also went more Fossil minimum our additional did, in from our New organizational approach expanded some aggressive to XXXX, and a get spending will standpoint, really focused it, that and we savings on learnings. got We as just through went additional X.X, XXXX

savings mostly well. organizational So, with savings as some expense

Ike Boruchow

the and Got trends current doing visibility just it? regarding best if is can side, department about of kind I'm I you the know or current of the your very amount you your – of visibility talk seeing – North the your America kind have channel curious business, specialty terms be especially specifically wholesale kind you're of Jeff, you where wholesale may could allude the e-comm America, outlook, well, stores. North where wholesale by in your to – least business stores, it, but is just on of

Jeffrey N. Boyer

on to that. commercial I the very He's may side jump in. have close Greg

you Greg, want to seeing? about So, talk you're what

Gregory A. McKelvey

Yeah.

wholesale really we the inventories. to is about brick-and-mortar is the They to the year. perform are to think in way half I think lack lean on visibility how of back going

are there, we the that's we consumers how going but don't – business. to impact next So going current may just the respond, to drive ability the is how have a business to know COVID the wave with happening

ways we that, as sure and And them on being closely drive I wholesale.com approach product we're substantial can just would sharing has and and though in balancing our demand that highlight with driving of within kind our conservative helping their business we're grow pie we're that wholesale incredibly our mix earlier, digital see to them strategies partnering businesses drive wholesale So, the I mentioned partnering we not that marketing specific to together. and business is it before. healthy tactics as growth demand signals. make so digital with in and supply

Ike Boruchow

I'm guidance, you business I my Got QX, think again, challenging know QX assuming provide when last I what expansion is color a holiday mean, down. giving I on your so year. the you and my expecting we margin about Is are mean, it. mean you're on take guess I any guys into shot. income you going aren't I last revenue could though potential you probably to pretty best sales expectation in be had mean, one, there even quarter? I think I'll the I

Jeffrey N. Boyer

this you tough to always you're I'll know though a say when help Well, model even just probably not in little guidance. situation. a bit, like giving it's thing I we're

XX%. roughly So XX%, quarter, down, in was it we second the were XX%, call it, I'd but roughly

and XX% we've given from between a You're range midpoint being guidance, down, the seeing is XX% our XX. of

used points then percentage on a improvement in actually, into contraction. be full going increase, of extension it'd XX% see QX So I'd of another I you have I'd if were improvement XX you, that. an that similar about that

a from a quarter that the that'll From fourth improvement XX% of that you something, deal to quarter. of standpoint, a yeah, this product. So XX% should in year. through connected a margin last fair to somewhat we We'll some had sense a fourth go liquidation amount of year great further be give

So much in more be the margin that. should

last year, XX%, year, more probably were should quarter what XX% be your much in mid-ish XXs, the maybe our for fourth we think XXs was which was last modeling I high purposes. just

as not strong but So which some quite still as as quarter, some in favorabilities had this I competitive pressures. it, mentioned,

general heads you structure a line of and from – help our that'll that. So a just top about get right sense are at the margin maybe just the where on

Ike Boruchow

helpful. Thanks much. it. so really guys Yeah, Appreciate

Kosta N. Kartsotis

end for of to We QX. support appreciate you thanks, to Thank Okay. interest and look very the forward you everyone, Thanks, much. and Ike, talking and we at listening. your

Operator

for you, Thank Thank call. today's gentlemen. ladies concludes participating. you and This conference

You disconnect. may now

Fossil (FOSL) 12 Aug 202020 Q2 Earnings call transcript