Why Fossil Group Inc. Stock Fell 26.3% in August

Why Fossil Group Inc. Stock Fell 26.3% in August

Shares of Fossil Group Inc. (NASDAQ: FOSL) declined 26.3% in the month of August, according to data provided by S&P Global Market Intelligence, after the lifestyle accessories specialist announced disappointing quarterly results and the resignation of its chief financial officer.

More specifically, Fossil stock plummeted more than 25% on a Aug. 9, 2017, alone -- the first day after posting its mixed report. Quarterly revenue dropped 12.9% year over year to $596.8 million, which translated to an enormous GAAP net loss of $344.7 million, or $7.11 per share. But that big loss also included a non-cash asset impairment charge of $6.50 per share, restructuring charges of $0.13 per share, a $0.05-per-share foreign currency headwind, and other tax and interest adjustments. After accounting for those unusual items, Fossil's adjusted (non-GAAP) net loss was a more modest $0.23 per share.

By comparison, analysts were expecting a wider adjusted net loss of $0.28 per share, but on significantly higher revenue of $619 million.

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Source: Fool.com