Fossil Group, the watches and lifestyle accessories specialist, has reported a 59 per cent sales acceleration to $410.9m in Q2 of FY21 ended on July 3, compared to $259m a year ago. The company has raised its FY21 outlook and expects sales to rise between 14 to 17 per cent.

“Our strong second quarter performance reflects solid operational execution across all channels and regions in a challenging consumer environment,” Kosta Kartsotis, chairman and CEO at Fossil Group, said in a press release. “We are encouraged by improving consumer demand in our largest markets and our core category of traditional watches.”
 
Digital sales for Q2 surged 10 per cent representing 41 per cent of total sales. Gross profit improved to $221.8 million (up from $140.6 million), while operating expenses were $207.5 million ($177.4 million). The net loss during the quarter reduced to $1.2 million ($22.5 million).

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Sales from the Americas region jumped 67 per cent to $176.7 million ($105.8 million), and Europe sales expanded 56 per cent to $124.4 million ($79.5 million). Furthermore, sales from Asia during second quarter grew 50 per cent to $103.5 million ($69.2 million).
 
“Looking ahead we are pleased that our digital initiatives, brand-building efforts and ongoing transformation activities are positioning the business to deliver sustained sales and earnings growth over the long-term,” Kartsotis concluded in the release.