Fossil To Adjust Store Fleet; Projects Restructuring Charges Of Up To $150 Mln

(RTTNews) - Fossil Group, Inc. (FOSL) said, during the third quarter, the company began working on a multi-year plan to reinvent the company designed to strengthen its foundation and support long-term sales growth and profitability objectives. The company anticipates that the plan will result in restructuring charges up to $150 million to be recorded predominantly in 2017 and 2018, with some charges recognized in 2016. Specific to the third quarter of fiscal 2016, the company recorded $15 million in restructuring charges, primarily asset impairment charges related to plans to close underperforming stores.

Kosta Kartsotis, CEO, stated: "We'll review and adjust our overall structure with an eye toward streamlining the way we work to respond to the changing needs and demands of our customers. And we'll examine and adjust our store fleet to reflect the evolving shopping habits of today's consumer."

Based on initial estimates, the company believes that, at the conclusion of the multi-year process, it could achieve annualized operating profit improvements in excess of $200 million over current levels.